and the state pension in line with inflation, or to limit them to rising at the same pace as average earnings – a real-terms cut in income. The welfare package will be “guided by fairness and a commitment to protect the most vulnerable”, according to a Government official.
Most departments are set to be told that their budgets will not rise to take account of inflation, forcing them to cut services in some areas because of rapidly increasing costs. But speaking in Parliament yesterday , Defence Secretary Ben Wallace promised to “protect our Armed Forces” from the effects of inflation.
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