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Daily Mirror
Daily Mirror
Politics
Dan Bloom

State Pension and benefits under threat as Rishi Sunak warns of 'difficult decisions'

Rishi Sunak today warned “difficult decisions” will be made over benefits and pensions amid mounting fears he will slash them in real terms.

The Prime Minister has been refusing to commit to his previous pledge to raise benefits and pensions in line with 10.1% inflation in April 2023.

And today he dug in further - telling PMQs “it wouldn’t be right to comment” before the November 17 Autumn Statement.

“Everyone knows we do face a challenging economic outlook and difficult decisions will need to be made,” he said.

He added the vulnerable would be prioritised - but still refused to promise a rise with inflation, even though he did as Chancellor.

SNP Westminster leader Ian Blackford hit out: “People don’t need to hear any more spin about compassionate conservatism.

Today he dug in further - telling PMQs “it wouldn’t be right to comment” before the November 17 Autumn Statement (AFP via Getty Images)

“People just need a straight answer to a simple question.

“Will he keep his promise and lift benefits and pensions in line with inflation?”

But Mr Sunak said he had an “excellent new Chancellor” so a decision was now up in the air.

“We will always, as my track record as Chancellor demonstrates, have fairness and compassion at the heart of everything we do,” he said.

Mr Blackford hit back: “Austerity 2.0 isn’t a difficult decisions. It is what it has always been - a Tory political choice to hit the poorest hardest.”

He called for Mr Sunak to “take the easy decision” to bring in a “proper windfall tax” on oil and gas giants after BP posted over £7bn in quarterly profits.

The Tory manifesto promised a “triple lock” on pensions, raising them each year by 2.5%, earnings or inflation, whichever is highest.

In April that would be inflation of 10.1%, while earnings only rose 5.5%. But Mr Sunak has so far refused to promise the triple lock will stay in place next April.

Raising pensions only by earnings of 5.5%, instead of inflation of 10.1%, would deprive people on the New State Pension of £443 a year.

Raising pensions only by earnings of 5.5%, instead of inflation of 10.1%, would deprive people on the New State Pension of £443 a year (STOCK PHOTO)

No10 has also repeatedly refused to say benefits will rise with inflation in April 2023 - despite Rishi Sunak previously saying they would.

Not even Carers’ Allowance, which is a measly £69.70 a week, has a promise to rise by 10.1%.

Campaigners say a 10.1% rise for 5.6million Universal Credit claimants will be long overdue, given the benefit only rose 3.1% in April 2022.

Raising Universal Credit by 5.5% earnings instead would be a real-terms cut of £978 a year for a working couple with three kids, the Resolution Foundation said.

Meanwhile, Work and Pensions Secretary Mel Stride has not even ruled out means testing some benefits including personal independence payments, carers allowance, attendance allowance, and disability living allowance for children.

It comes as tens of millions of Brits face “eye-watering” tax rises and spending cuts to fill a black hole of up to £50billion left by Liz Truss crashing the economy.

The Autumn Statement will be announced on November 17 by new Chancellor Jeremy Hunt.

It’s set to announce about a half-and-half mix of tax rises and public spending cuts, despite services creaking under a decade of austerity.

Weeks after Ms Truss’s failed tax cuts bid, a Treasury source said: “It is going to be rough.

“The truth is that everybody will need to contribute more in tax if we are to maintain public services.”

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