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Welsh Tories call for benefits to rise with prices

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MoneyImage source, PA Media

Tory Senedd members have written to the chancellor urging him to protect benefits from surging inflation.

It was widely reported the prime minister favoured increasing some, including universal credit, according to average earnings, next April.

Welsh Tory finance spokesman Peter Fox told the Welsh Parliament that his group had called on Mr Hunt to base the rise on prices.

On Monday, Jeremy Hunt appeared to hint he would maintain the link to prices.

Certain benefits, including disability benefits and carer's allowance, must increase in line with inflation by law.

In a Commons statement, Mr Hunt told MPs "decisions of eye-watering difficulty" on tax and spending would have to be taken, as the UK government tries to restore economic stability.

But he seemed to suggest that benefits would keep up with inflation, as promised by previous prime minister Boris Johnson, telling former Labour shadow chancellor John McDonnell he had been "very clear about the values through which we will take those decisions".

Mr Hunt was referring to his pledge, in his statement, that government tax and spending decisions would be based on "core compassionate conservative values".

On Tuesday, Welsh Conservative finance spokesman Peter Fox told the Senedd he was "reassured by the chancellor's comments that his focus will always be on those who are most in need".

"But I know that we must also do our bit to ensure that the government remains focused on helping the most vulnerable," he said.

"That's why today the Welsh Conservative group have written to the chancellor calling for benefits to be uprated in line with inflation."

The Tory group's letter was welcomed by Labour Welsh government finance minister Rebecca Evans.

'Heated exchange'

Meanwhile, Prime Minister Liz Truss is no longer promising to increase state pensions in line with inflation, two weeks after saying she was "committed" to the triple lock, where payments rise by whatever is higher: prices, average earnings or 2.5%.

Her spokesman has now said she was "not making any commitments" on government spending.

UK ministers have been told to draw up spending cuts ahead of a further economic statement from Mr Hunt at the end of October.

Earlier in the Senedd, Wales' first minister lost his temper under questioning from the Welsh Conservative leader, with Mark Drakeford accusing Andrew RT Davies' party of making a mess of the UK's budget and reputation.

It followed a heated exchange where Mr Davies called for a solution to poor ambulance response times.