PRIME Minister Liz Truss is set to abandon plans to impose real-terms benefits cuts in an attempt to stave off a Tory mutiny brewing after just weeks in office.
It comes as senior Conservatives publicly urge Truss to raise benefits in line with inflation, rather than earnings, to avoid exacerbating the cost-of-living crisis with real-terms cuts.
Philippa Stroud, a Tory peer and chief executive of the Legatum Institute, called for an inflation-linked rise in benefits because “you don’t build growth on the back of the poor”.