Amid the current cost of living crisis in the UK, the government has yet to confirm whether beneficiaries need to prepare for the possibility that payments will not rise in line with inflation.
Concerns are mounting after Prime Minister Liz Truss and Chancellor Kwasi Kwarteng came under fire last week for announcing the mini-budget.
The move, reported by the BBC and others, would aim to reduce future government debt following the post-mini-budget economic turmoil.
Treasury Secretary Chris Philp said a pledge by former Chancellor Rishi Sunak to increase benefits in line with inflation was being considered after various government departments were reportedly asked to draw up efficiency-saving plans.
He told Sky News: “It’s so important to keep the UK economy growing. Important for raising wages and important for paying future tax bills.”
However, when asked by ITV’s Robert Peston about the increase in benefits, Mr Philp said: “I will not be making any political commitments on live TV, it will be scrutinized in the usual way. We’re going to make a decision and I’m sure it will be made known to the House of Commons in the first place.”
On Wednesday, the Bank of England launched an emergency bond-buying program to keep borrowing costs from spiraling out of control and avert a “material risk to Britain’s financial stability”.
The bank announced it would step in to buy up to $65 billion worth of government bonds.
Martin Lewis has recently been “very concerned” about Universal Credit
V worried to hear further #peston The government has not yet decided whether it will honor the previous government’s promise to increase benefits with inflation
Even the grim optics of offsetting this against tax cuts for high earners pales in comparison to the devastating way this would drag people into real poverty
— Martin Lewis (@MartinSLewis) September 28, 2022
consumer champion martin lewis admitted he was “very concerned” that the government has not yet committed to increasing benefits in line with inflation.
He tweeted: “Even the grim optics of offsetting this against tax cuts for high earners pales in comparison to the devastating way this would drag people into real poverty.”
https://www.theargus.co.uk/news/22953628.dwp-universal-credit-warning-martin-lewis-admits-very-concerned/?ref=rss DWP Universal credit warning as Martin Lewis admits he is ‘very concerned’