PM Rishi Sunak Discusses Welfare Cap at G20 Summit
Rishi Sunak, the UK Prime Minister, has stated that he has not ruled out the possibility of capping benefits to free up funds for tax cuts. The Treasury is reportedly exploring the idea of severing the link between welfare payments and wages, which have significantly increased amid the inflation crisis.
Reassurances for Vulnerable Families
During the G20 summit, Sunak reassured families that the government will always take care of the most vulnerable. He acknowledged the substantial 10% increase in benefits this year, but did not provide clarity on maintaining the link.
Cutting Benefits for Tax Cuts
Jeremy Hunt, another prominent figure, is also considering cutting benefits in real terms to allow for tax cuts ahead of the upcoming election. Treasury officials have prepared several money-saving options for the Autumn statement, including halting the lifting of working benefits in line with inflation. This move would provide the Chancellor with greater flexibility to reduce taxes in the Spring Budget next year.
Impact on Disability Benefits and Working-Age Brits
Cabinet Minister Mel Stride has indicated that welfare changes may make it more difficult for working-age Britons to receive disability benefits. These changes would not take effect until after the election, but the number of individuals unable to work due to illness has increased to nearly three million since the pandemic began.
Commitment to the Triple Lock
Ministers affirm their commitment to the triple lock system, which ensures that state pensions will increase by the highest of inflation, wage growth, or 2.5%.
