Jeremy Hunt weighs up cutting benefits to make room for tax cuts ahead of next election
JEREMY Hunt is weighing up cutting benefits in real terms to allow for tax cuts ahead of the next election expected next year.
Treasury officials have drawn up money-saving options ahead of his Autumn statement including halting lifting working benefits in line with inflation.
The move would then give the Chancellor the maximum headroom to slash taxes in his Spring Budget next year.
Cabinet Minister Mel Stride said this week that welfare changes would make it more difficult for working-age Brits to get disability benefits.
The change would not come into force until after the election but those who are too sick to work has grown to nearly three million after the pandemic.
Ministers say they are committed to the so-called triple lock that guarantees the state pension will go up by the highest of inflation, the rise in wages or 2.5 per cent.
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But public finances remain tight for Mr Hunt as the Treasury had just £6.5 billion of headroom back in March which was the smallest on record.
A spokesman for the Department for Work and Pensions last night said: “In order to protect the most vulnerable from the impact of high inflation, the government increased benefits by over 10% this year.
“As is the usual process, the Secretary of State will conduct his statutory annual review of benefits and State Pensions in the Autumn, using the most recent data available.”