Brits receiving DWP benefit payments including Universal Credit have been warned over a potential lack of pay increases despite soaring daily living costs.
Amid the current cost of living crisis in the UK, the government is yet to confirm whether people on benefits will have to prepare for the possibility that payments will not go up in line with inflation.
Concerns are mounting after Prime Minister Liz Truss and Chancellor Kwasi Kwarteng came under fire for the mini budget announcement last week.
The move, reported by the BBC and others, would be aimed at reducing future Government borrowing after the economic turmoil following the mini budget.
Treasury minister Chris Philp said that a commitment by former chancellor Rishi Sunak to uprate benefits in line with inflation was under consideration, after reports that different Government departments have been asked to draw up plans for efficiency savings.
He told Sky News: “Getting Britain’s economy growing is so important. Important to raise wages and important to pay the tax bills of the future.”
However, when asked about increasing benefits by ITV's Robert Peston, Mr Philp said: “I am not going to make policy commitments on live TV, it is going to be considered in the normal way. We will make a decision and it will be announced I am sure in the first instance to the House of Commons.”
On Wednesday, the Bank of England launched an emergency government bond-buying programme to prevent borrowing costs from spiralling out of control and stave off a “material risk to UK financial stability”.
The Bank announced it was stepping in to buy up to £65 billion worth of Government bonds – known as gilts – at an “urgent pace” after fears over the Government’s economic policies sent the pound tumbling and sparked a sell-off in the gilts market.
Martin Lewis 'very concerned' over Universal Credit latest
V concerned to hear on #peston govt hasn't decided yet if it'll follow thru on prior administration's promise to uplift benefits with inflation
— Martin Lewis (@MartinSLewis) September 28, 2022
Even the dire optics of balancing that against high earner tax cuts, pales compared to devastating way it'd pull folk into real poverty
Consumer champion Martin Lewis admitted he was “very concerned” that the government had not yet committed to increasing benefits in line with inflation.
He tweeted: “Even the dire optics of balancing that against high earner tax cuts, pales compared to the devastating way it’d pull folk into real poverty.”
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