Chancellor under pressure to back benefits increase

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Kwasi Kwarteng risks a fresh battle with Tory MPs over benefits funding after being forced into a humiliating U-turn on plans to cut tax for top earners in the face of a revolt by party grandees.

“It is essential that ministers don’t seek to balance the books on the backs of people struggling to pay the bills and feed their families – public services, welfare and aid are all needed now more than ever.”

“Anything less than raising benefits in line with inflation will amount to the largest permanent deliberate real-terms cut to the basic rate of benefits in history.” They may also increase other benefits if they deem it appropriate, “having regard to the national economic situation and any other matters” they consider relevant.

 

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