Jeremy Hunt has sparked outrage following reports he is weighing up plans to cut benefits in real terms to make way for pre-election tax cuts.
Ministers usually increase payments in line with the previous September’s inflation figures – which this year could be 7 per cent.
But the chancellor is considering breaking with the tradition to give him more room for manoeuvre as the Tories brace for what is expected to be a difficult general election.
According to a report published on Thursday by Bloomberg, real-terms benefits cuts were one of a number of options being considered by the chancellor ahead of the autumn statement, scheduled for 22 November.
The report, which cites figures close to Hunt, said the chancellor was weighing-up increasing benefits by 1 per cent below inflation in a bid to fund tax cuts or boost spending elsewhere.
Hunt faces a challenging autumn statement with little financial breathing room as the economy recovers from the effects of the pandemic, and pressure from Tory MPs to offer tax cuts to voters as the party prepares for an upcoming general election.
It comes as Mel Stride said earlier this week that changes to welfare would make it more difficult for working-age Brits to claim disability benefits.
The proposed shake up of the Work Capability Assessment could see people with disabilities given more support to work from home in a bid to cut millions off the government’s welfare bill.
The work and pensions secretary said the change would not come into force until after the election, but charities have already warned the plans risk forcing those who are too ill to start working.
In July, the chancellor warned it would be “unlikely” there would be be any room for pre-election tax cuts to ease the cost of living crisis in the government’s autumn statement.
He also admitted it would be tough to bring down inflation despite Rishi Sunak’s pledge to halve inflation by about 5 per cent by the end of the year.
Rebecca Long-Bailey, a former shadow chief secretary to the Treasure, told the Guardian: “If Jeremy Hunt is genuinely considering cutting benefits for the most vulnerable in society then that is wholly unacceptable.
“It’s also clear that people are still struggling with a cost of living crisis on top of soaring energy costs. It would be catastrophic for families.”
News the former health secretary is considering a real-term cut to benefits has travelled fast, with users taking to social media platform ‘X’, formerly known as Twitter, to voice their outrage. Here’s a pick of the best reactions:
