LONDON (Parliament Politics Magazine) – Minister of work and pensions department has informed that the expectation is that PM Truss will give the decision on whether to raise benefits in line with inflation in November.Â
There has been no decision on uprating the benefits, Victoria Prentis told Sky News. She was, however, certain that a decision would be made as soon as possible.Â
It comes after a Downing Street insider claimed that the prime minister could understand both points of view and was still “genuinely undecided” over the issue.
Before taking a stance, Ms. Truss will “listen to cabinet and colleagues,” the source continued.
Ms. Prentis said a decision made in late November would enable Work and Pensions Secretary Chloe Smith to take into account the most recent data on earnings, which are due tomorrow, and the most recent data on inflation, which are coming later this month.
Ms Truss couldn’t do anything unless she got those numbers. She would then think about how to increase benefits, if at all, and which figure to use, Ms. Prentis said.
“She has a very wide discretion to do that. We make a decision and we communicate usually by the end of November”.
“And then I will take through a piece of legislation in the House of Commons, which happens every year in January – and then benefits will be uprated or not in accordance with whatever method is chosen in April.”
Chancellor Kwasi Kwarteng has asked the Office for Budget Responsibility (OBR) to provide an economic prediction on November 23.
Computer systems of the Department of Work and Pensions are thought to need to go into effect two days after that on November 25, most likely making that the day when a decision about whether to increase benefits will be made. However, this date is not specified in the law.
Despite mounting pressure from a cabinet minister and top Tories MPs to act during the cost of living crisis, the PM has in recent weeks refused to make commitments on increasing benefits in line with inflation.
The prime minister stated to broadcasters in Birmingham, the host of the Conservative Party’s conference last week, that she had “not made a decision” over whether to uphold the benefit up-rate pledged by the PM before her, Boris Johnson.
“I’m very clear that going into this winter, we do need to help the most vulnerable,” Ms Truss added.
The estimates of Institute for Fiscal Studies say that welfare spending increases by ÂŁ1.6 billion for every percentage point that the CPI rises.
In order to prevent 450,000 people from falling into poverty the next year, Baroness Stroud, who oversaw welfare policy under Sir Iain Duncan Smith, former work and pensions secretary and is currently at the Legatum Institute, has cautioned that benefits must be increased in pace with inflation.
Ms. Truss has stated that she is “fully committed” to raising pensions in line with inflation, despite the fact that she has not ruled out real-terms benefit reductions.
