The government 'may have to think again' when it comes to increasing benefits in line with wages instead of inflation, says Chair of the Treasury Select Committee, Mel Stride, He anticipates it will be 'extraordinarily difficult' for the government.
Liz Truss is facing a fresh battle with Conservative MPs over a potential benefits squeeze and cuts to public spending, after already being forced into making a policy U-turn.
It is understood that Downing Street is considering increasing Universal Credit using a lower metric, such as the increase in average earnings, instead.While an official decision on benefit payments has still not been made, Welfare Secretary Chloe Smith said one"will be taken in due course". It comes as the government dramatically dropped its plans to abolish the 45% tax rate on earnings over £150,000 following widespread criticism.