Money saving expert Martin Lewis is "very concerned" after the Prime Minister was unable to confirm whether benefit payments would be rising in line with inflation. The Government had pledged in April to boost DWP benefits amid concerns about the impact of the cost of living crisis on vulnerable households.
But Treasury secretary Chris Philp was initially unable to say whether the Government still intended to do this, and now Liz Truss has refused to be drawn on the question either. Asked by broadcasters in Kent about whether the uprating would take place, Ms Truss said: "The biggest part of the package that we announced was the support for families on energy, as well as making sure that we reversed the national insurance rise.
"In terms of benefits uprating, that is something the Work and Pensions Secretary is looking at and she will make an announcement in due course as is the normal practice, for the autumn." Pressed for more information by journalists, the Prime Minister said: "As I said, this is something the Work and Pensions Secretary is looking at.
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"What is important to me is that we are fair in the decisions we make, but most importantly that we help families and businesses at this very difficult time with their energy prices. I had real fears that businesses could go out of business this winter because they were facing unaffordable energy bills.
"We put in place a business scheme, we put in place support for households across the country. That has cost us money but it was important we acted quickly."
Martin Lewis took to Twitter to express concern, BirminghamLive reports, warning of the "devastating" impact of failing to increase benefits. The Money Saving Expert founder said: "Even the dire optics of balancing that against high earner tax cuts pales compared to [the] devastating way it'd pull folk into real poverty."
Chancellor Kwasi Kwarteng's mini-budget last week met with fierce criticism after abolishing the 45 per cent top income tax rate for people paid more than £150,000 a year. Markets responded negatively to the mini-budget, prompting a currency crisis and a run on the pound.
Mr Kwarteng has also refused to confirm or deny whether the Government still intends to press ahead with its earlier plans to uprate benefits to bring them into line with inflation. The UK's rate of inflation stood at 8.6% in the 12 months to August.
"It's premature for me to come to a decision on that," the Chancellor said. "But we are absolutely focused on making sure that the most vulnerable in our society are protected through what could be a challenging time."
Campaigners have appealed to the Government not to backtrack on uprating benefits. Child Poverty Action Group chief executive Alison Garnham said: "Children are already going hungry as costs soar - unless benefits are uprated to match inflation, they will also become the casualties of a collapsing economy. Struggling families will not forgive a chancellor who comes to them for efficiency savings when their cupboards are already bare. Families have lost enough; they need support that is realistic and actually enables them to pay the bills."
Anastasia Berry, policy manager at the MS Society and policy co-chair of the Disability Benefits Consortium, said the groups are "horrified that the Government is considering breaking a promise to disabled people while at the same time giving a tax break to millionaires".
She said: "So far the new Government has dangerously overlooked disabled people and it must reaffirm the pledge made earlier this year to raise benefits in line with inflation. This should be the bare minimum to support those we know are already at breaking point."
The Joseph Rowntree Foundation said it is "shocking" that the Government may not uprate benefits by inflation. Senior policy adviser Iain Porter said: "Many people across the UK will agree it is morally indefensible that the Prime Minister would choose to give tax cuts to the richest funded on the backs of the poorest in our society. "Those who will lose out if the Government continues down this track include people with low earnings, families with children, carers and people who are sick or disabled."
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