MILLIONS of Brits on benefits could miss out on HUNDREDS after the government today refused to give a cast-iron guarantee welfare payments will rise in line with inflation.
On Wednesday Treasury Minister Chris Philp said the decision to hike Universal Credit next April was “under consideration”.
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But just months ago then-Chancellor Rishi Sunak said benefits WOULD be uprated by the current 9.9 per cent inflation rate.
Kwasi Kwarteng today said it was “premature” for a decision to be made.
The Chancellor commented: “It’s premature for me to come to a decision on that.
“But we are absolutely focused on making sure that the most vulnerable in our society are protected through what could be a challenging time.”
Mr Kwarteng added that he’s absolutely committed to bringing back the pensions triple lock.
The potential benefits U-turn was met with fury by campaigners and charities saying it will leave millions being worse off from next April when it kicks in.
If ministers decide to uprate benefits by earnings instead of inflation it could cost the typical low-income families £1,000 per year.
Meanwhile, those on the current standard allowance for single claimants over the age of 25 would miss out on around £360.
Alison Graham, boss of Child Poverty Action Group, 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.”
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The Treasury say ministers are being asked to “take a responsible and disciplined approach to spending” as Whitehall departments are forced to stick to existing spending limits despite soaring inflation.
But the country could be set for another era of devastating cuts to pay for the government’s £45 billion tax-cutting package.
The Resolution Foundation think-tank say the mini-Budget announcements may lead to cuts not seen since George Osborne was in Number 11 who presided over an era of austerity in a bid to cut the national debt after the financial crash.
