Pensions and benefits set to increase in line with inflation costing the nation 11bn next year

FILE PHOTO: Britain's Chancellor of the Exchequer Jeremy Hunt walks outside his house in London, Britain, October 18, 2022. REUTERS/Toby Melville/File Photo

PENSIONS and benefits are expected to increase in line with inflation in a move that will cost £11billion in 2023-2024.

While the plan has yet to be confirmed, the Government hopes it will be seen as “fair and compassionate”.

Jeremy Hunt has said his Budget won’t ‘completely protect people’ from inflation hell

But the increases would mean deep cuts in public spending — and tax rises.

Tory MPs have raised concerns that increasing benefits in line with wages, rather than inflation, would see real-terms cuts for millions and warned against balancing the books “on the backs of the poorest”.

Chancellor Jeremy Hunt has said his Budget won’t “completely protect people” from inflation hell.

He said his priority  will be shielding the poorest from crippling prices.

Real-terms cuts to pensions and benefits are both on the cards as well as deep public sector cuts.

Ahead of the November 17 Autumn Statement Mr Hunt said: “While we can’t completely protect people from rising prices, my priority at the upcoming Autumn Statement will be to protect the poorest in society as we take the tough decisions necessary to fix our public finances.”

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