Rishi Sunak is considering raising state pensions and DWP benefits like Universal Credit in line with inflation. However, the move would likely usher in deeper public spending cuts elsewhere and higher tax rises.
The Prime Minister and Chancellor Jeremy Hunt are considering imposing up to £60 billion in tax rises and spending cuts in the autumn budget on November 17. Treasury sources insisted no decisions have been taken, but did not deny a report in the Times stating they would avoid real-terms cuts on pensions and benefits.
The move could cost a combined £11 billion next year, but would prevent a rebellion from some Tory MPs and avert at least some criticism of the challenging decisions being unfair. Members of Sunak’s Cabinet including Michael Gove have previously warned against going back on the manifesto commitment of maintaining the pensions “triple lock” as inflation soars past 10 per cent.
