Embattled Chancellor Kwasi Kwarteng sought to blame the Queen’s death for his botched mini-Budget which unleashed financial turmoil and hiked mortgage rates.
Mr Kwarteng said the national mourning period added to pressure in the build-up to his Commons statement which plunged the Conservatives’ poll ratings into freefall.
On an unprecedented day of chaos at the party’s conference in Birmingham, top Tories were embroiled in a bitter civil war as senior ministers fought over benefit cuts, tax slashing and raising the retirement age.
Beleaguered Prime Minister Liz Truss twice refused to say if she “trusted” the Chancellor - less than 24 hours after No10 insisted she had “full confidence” in the Treasury chief.
Home Secretary Suella Braverman accused Tory colleagues of waging a “coup” against the PM after forcing her into a humiliating U-turn on plans to axe the 45p tax rate.
But Ms Truss risked unleashing fresh chaos after signalling she wanted to launch another attempt to scrap the higher rate.
As the party descended into open revolt, Cabinet ministers piled pressure on the Premier to lift benefits in line with inflation - a move she refused.
But not content with sparking fear among hard-up families, the PM also triggered worries that older people could be forced to work longer.
The chaos engulfing the Birmingham jamboree saw Tory infighting plumb new depths.
Explaining the run-up to his September 23 statement, Mr Kwarteng claimed: “It was a very quick time that we did it, and you have got to remember the context.
"What was extraordinary about that month was that we had a new Government and also we had the sad passing of Her Majesty Queen Elizabeth II, so we had a nation in mourning and then literally four days, I think, after the funeral, we had the mini-Budget.
"It was high-speed, high-pressure environment."
Ms Truss, who delivers her first party conference speech as leader on Wednesday, was left reeling after colleagues blasted her refusal to guarantee welfare payments would rise in line with inflation, currently at 9.9%.
Instead, they could increase with earnings - estimated at 5.4%.
Boris Johnson had pledged benefits would climb with inflation.
But Ms Truss insisted: “No decision has been made yet on benefit uprating.”
Commons Leader Penny Mordaunt said it "makes sense" to hike benefits with prices.
Former Brexit Minister Lord Frost said: "I agree with Penny Mordaunt and I think she’s got this right.
“The Government has made a commitment to uprate benefits.
“It shouldn't take on battles it can't win. People feel insecure going into the autumn and I think it should stick to this commitment.”
Asked if he wanted the measure, Welsh Secretary Sir Robert Buckland said: "Every Conservative Government that I've been part of has maintained the safety net, and I'm sure this one will do the same."
Work and Pensions Secretary Chloe Smith declared: “Protecting the most vulnerable is a big priority for me.”
Her predecessor Damian Green warned the PM would fail to get a below-inflation social security rise through Parliament.
“If people are already struggling - and many of these people will be - then making them struggle more is not a sensible response to the problems,” he said.
Treasury Select Committee chairman Mel Stride said Conservative MPs would find it “extraordinarily difficult” to back “what is a real terms cut”.
Former Cabinet Minister Michael Gove warned he would need "a lot of persuading" to support a below-inflation rise.
Campaigners also blasted the refusal to reassure families on welfare they would be protected from soaring prices.
Writing in the Mirror, former PM Gordon Brown warns of a “benefits bloodbath”.
Disability charity Scope’s strategy director James Taylor said: “Not uprating benefits in line with inflation will have severe consequences.”
Crisis-hit Ms Truss also threw into doubt plans to lift the retirement age to 67 by 2028 - raising fears she could bring it forward.
Under the Pensions Act 2007, the State Pension age for men and women will increase from 67 to 68 between 2044 and 2046.
The Pensions Act 2014 requires the Government to regularly review State Pension age.
The next review must be published by May 7, 2023.
Asked if she will lift the retirement age beyond 67, Ms Truss claimed: "You're asking me to speculate about all kinds of decisions that haven't yet been made.”
Age UK charity director Caroline Abrahams said: "Any decision by the Government to make today's 50-somethings wait longer for their State Pension would be setting up hundreds of thousands of ordinary men and women for a miserable and impoverished period in their run up to retirement – a regressive and deeply regrettable step."
Silver Voices director Dennis Reed said: “It seems like the Government is trying to find ways to make pensioners and others who are on lower incomes pay for all the unfunded tax cuts in the mini-Budget.”
Lib Dem work and pensions spokeswoman Wendy Chamberlain said: “Liz Truss seems to have completely lost the plot.
“After screwing over mortgage borrowers, now it looks like she’s preparing to force millions to tear up their retirement plans.”
The PM was also hit by a revolt from the Tory hard right.
Home Secretary Ms Braverman said she was "disappointed" by the 45p tax U-turn - criticising party rebels who “staged a coup, effectively, against the Prime Minister".
She raged: "I am very disappointed to say the least about how some of my colleagues have behaved.”
But Ms Truss indicated she would revive attempts to abolish the 45p rate.
“I do support a lower, simpler tax system - I've always been very clear about that,” she insisted.
