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Daily Record
Daily Record
Politics
Chris McCall

Scots families on Universal Credit could be '£290 worse off' if Liz Truss doesn't uplift benefit

Scots families on Universal Credit could be left £290 worse off if the UK Government fails to increase the benefit in line with inflation, the Lib Dems have warned.

Liz Truss and Chancellor Kwasi Kwarteng have so far refused to commit to the uplift - despite a previous assurance from former PM Boris Johnson that benefits would be boosted from next April.

The Tory Government has considered raising Universal Credit only in line with average earnings and not in line with inflation.

But a couple both receiving the benefit would face a £290 real-terms cut to their income as a result.

But research from the House of Commons Library, commissioned by the Lib Dems, found regular pay has risen on average by just 5.4 per cent, compared to expected inflation of 10 per cent.

A household with two Universal Credit claimants aged over 25 would see their support slashed by £290 in real terms next year if benefits were only raised in line with earnings rather than inflation. A single person on Universal Credit would lose £185 a year while single adults would lose £146.

Liz Truss is under pressure from her own MPs not to cut benefits (Getty Images)

The Lib Dems are calling on Tory ministers to commit to uprating benefits in line with inflation in the next 24 hours to avoid sleepless nights for the most vulnerable in Britain.

Wendy Chamberlain, MP for North West Fife, said: "This Government is utterly heartless. Every hour they refuse to give support to some of society’s most vulnerable is an hour in which they lose all decency. The Conservatives are acting like Robin Hood in reverse, taking away from struggling families to fund tax cuts for the wealthiest companies.

"Liz Truss must show some leadership and commit to up-rating benefits in line with inflation in the next 24 hours, to prevent sleepless nights for families across the country."

Two serving ministers, five former Work and Pensions Secretaries and the architect of Universal Credit are among the Tories who’ve urged Liz Truss publicly not to cut benefits. Those suggesting she raise payments with inflation span the spectrum of the party, from right-wingers Esther McVey and Lord Frost to One Nation Tories like Damian Green.

The PM wants to break a promise made by Boris Johnson to put up benefits in line with rising prices next April - instead matching rises in average earnings.

A DWP spokesperson said: "The Secretary of State commences her statutory annual review of benefits and State Pensions from late October using the most recent prices and earnings indices available.

"We are committed to looking after the most vulnerable which is why we’ve delivered at least £1,200 of support to families this winter while also saving households an average of £1,000 a year through our Energy Price Guarantee. This support is on top of the annual working-age benefits bill which is over £87 billion."

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