On becoming Prime Minister, Rishi Sunak stressed that difficult decisions will have to be made. The choices facing Sunak and his Chancellor Jeremy Hunt are stark given the perilous state of the public finances. While Sunak and Hunt are right to pursue fiscal conservatism, they need to be careful about what they choose to cut.
It will be tempting for the government to not increase benefit payments in line with inflation. This would be a terrible mistake. Most households are starting to feel the pinch from rising inflation but the cost of living crisis is felt most acutely among those on the lowest pay, with new research from the ONS revealing that the price of some basics such as tea and pasta have risen sharply. We’ve also seen food bank use increase with many charities struggling to keep up with demand and reports of people skipping meals and missing work because they can’t afford to buy basic hygiene products. The new government should do all it can to help those who are struggling to make ends meet and so the Prime Minister should honour his previous commitment to increase Universal Credit at least in line with inflation.
