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Wales Online
Wales Online
Politics
Will Hayward

Liz Truss under pressure over benefits as she refuses to rule out real terms cut

Embattled Prime Minister Liz Truss is under pressure to rule out a real-terms cut in benefits, which she has so far refused to rule out as she looks for ways to fund Chancellor Kwasi Kwarteng's unfunded promises of tax cuts.

The Chancellor has so far been into two humiliating U-turns, one on the 45p top rate of income tax and one on a promise to publish much faster his debt reduction plan. However the Tory leadership remains under pressure over its plans for benefits.

There are reports that the Government is considering increasing benefits in line with average wage rises instead of by the rate of inflation. Although some senior Tories argue that it would be fair for benefits to rise at the same rate as wages, others say the least well off are being hit hardest by inflation and benefits must not suffer real terms cuts.

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