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Nottingham Post
Nottingham Post
World
Caroline Barry & Dan Bloom

DWP refuses to rule out benefit or state pension cuts in April

Downing Street refused to rule out benefit and pension cuts which could affect millions of people next April following Rishi Sunak's appointment as Prime Minister on Monday, October 24.

The refusal to raise the state pension so it is in line with the 10.1 percent inflation rise would be a change from previous decisions by the Conservative party. This is despite the new Prime Minister's promises to honour the 2019 party manifesto.

Former Prime Minister Liz Truss stated that that pensions would rise in line with inflation in April 2023 but this could no longer be the case. Downing Street refused to confirm if the rise would be going ahead after Truss resigned after just six weeks reports the Chronicle Live.

The Mirror reported that raising pensions only by earnings as opposed to inflation would deprive people on the New State Pension of £443 a year. The PM’s Press Secretary said Sunak would 'do what is right and compassionate' but would not give further details.

“I’m not getting into speculation on what is going to happen,” she said.

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“A lot of these things have to be discussed with the Prime Minister and the Chancellor I’m not going to speculate on what is and isn’t going to be in the Budget. I’m not going to comment on what decisions are going to be made. The PM’s only been in office for the last 24 hours.”

Lib Dem MP Wendy Chamberlain said: “This endless hokey cokey from the Conservatives is leaving pensioners and struggling families in a desperate limbo.”

It is thought the issue will be resolved at the November 17 Autumn Statement, which Mr Sunak today pushed back from October 31. Chancellor Jeremy Hunt - who had originally floated the idea of ditching the triple lock, but was overruled by Liz Truss - is drawing up billions in cuts to balance the books.

Today’s comments by No10 are a U-turn on a U-turn on a U-turn on a U-turn on a U-turn. The 2019 Tory manifesto promised to raise pensions by the triple lock - the highest of earnings, inflation, or 2.5 per cent.

As Chancellor Rishi Sunak then scrapped the triple lock for one year because of abnormal earnings figures due to Covid. He then brought it back and promised pensions would rise by the triple lock in April 2023.

New Chancellor Jeremy Hunt then put the triple lock back on the table as he sought billions in cuts. Liz Truss then overruled him a day before she resigned and said she was committed to the triple lock, but No10 then refused today to say Rishi Sunak was committed to the triple lock.

Bizarrely, the PM’s Press Secretary today claimed he was 'committed to delivering on the manifesto' of 2019 - which included the triple lock, but she repeatedly refused to say he’s committed to 'all' the promises in the 2019 manifesto.

Instead, she said: “He’s committed to delivering on the promise of the manifesto”.

No10 also refused to say benefits will rise with inflation under Prime Minister Rishi Sunak - despite him previously pledging they would. “This is a discussion to be had with the PM and the chancellor. He’s only been in office for 24 hours. They will discuss all these things,” the Press Secretary said.

No10 put Liz Truss's commitment to spend 3 per cent of GDP on defence by 2030 in doubt - despite a minister, James Heappey, saying he will resign if it is broken. And the PM’s press secretary announced he will U-turn on Liz Truss's decision to lift the fracking ban, and re-impose a "moratorium" that was in the Tories' 2019 manifesto.

But No10 did confirm the Energy Price Guarantee - which caps bills at an average of £2,500 a year - will last through to the end of March, and Liz Truss’s National Insurance cut in November will still happen, No10 suggested, as it has already passed a vote by MPs.

That is despite the cut from 13.25 per cent to 12 per cent reversing a rise that Rishi Sunak himself put in place.

The PM’s Press Secretary said: “Obviously there was action taken in the last six weeks and the former Prime Minister and the Chancellor. It’s now gone through the house and it’s been voted on.”

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