Minister Alex Chalk hints at Cabinet row over benefits rises

Minister demands ‘decent and humane’ approach as he hints at Cabinet row over benefits amid claims Chancellor Jeremy Hunt will impose real-terms cuts to welfare payments

A Cabinet minister today hinted at a row over benefits policy amid claims Chancellor Jeremy Hunt could impose a real-terms cut to welfare payments.

Alex Chalk, the Justice Secretary, insisted the Government must pursue a ‘decent and humane’ approach to the most disadvantaged in society.

Mr Hunt is reportedly considering capping benefit rises next April to free up cash for tax cuts ahead of the general election.

This could see working-age benefits slashed in real terms if the Chancellor decides not to peg them to September’s inflation figure, as is usual practice.

Mr Hunt could instead lift benefits by at least one percentage point below inflation or raise them in line with projected lower inflation figures for next year, it has been claimed.

The headline CPI measure of inflation was 6.8 per cent in July.

Alex Chalk, the Justice Secretary, insisted the Government must pursue a ‘decent and humane’ approach to the most disadvantaged in society.

Chancellor Jeremy Hunt is reportedly considering capping benefit rises next April to free up cash for tax cuts ahead of the general election

Prime Minister Rishi Sunak declined to ‘speculate’ about Mr Hunt’s plans ahead of the Autumn Statement on November 22

The headline CPI measure of inflation was 6.8 per cent in July 

If the Chancellor were to pursue such a course, it would likely cause a political row – especially if pensioners receive an boost of around 8 per cent to their state pension under the Government’s commitment to the ‘triple lock’.

Mr Chalk this morning suggested there could be a Tory pushback to any move by Mr Hunt to break the usual linking of benefit rises to inflation.

Asked by Sky News if he would be personally comfortable with such a plan, the Justice Secretary said: ‘We must do everything we can for the most disadvantaged in society.

‘That is why we put up the benefits by 10.1 per cent and also Universal Credit, but also pensions as well.

‘We want to ensure, I will want to ensure, my colleagues will want to ensure, that we are decent, humane and we want to support people.’

Asked if that meant he wouldn’t be comfortable with a real-terms cut to benefits, Mr Chalk replied: ‘Take it as you like.’

Yesterday, Prime Minister Rishi Sunak declined to ‘speculate’ about Mr Hunt’s plans ahead of the Autumn Statement on November 22 when asked if he could guarantee benefits would rise with inflation.

Speaking to broadcasters at the G20 summit in New Delhi, the PM said there was a legal process which was worked through ‘every year to do benefits uprating and a whole host of other things’.

‘And those decisions are announced at the Autumn Statement, that’s entirely normal,’ he added.

But Mr Sunak has committed to the ‘triple lock’ on pensions, which sees the state pension rise each April by whatever is highest out of average earnings, inflation, or 2.5 per cent.

Pensioners remain on course for a large increase after figures showed annual growth in employees’ average total pay, including bonuses, was 8.2 per cent between April to June.

Next April’s rise in the state pension will be calculated using inflation data from September, published in mid-October, and average earnings growth from May to July this year, which will be known later this month.

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