On the go: Chancellor of the exchequer Jeremy Hunt has told the chair of the work and pensions select committee that “there are difficult decisions to be made” in response to a request that social security benefits and state pensions be uprated in April 2023 in line with the consumer price index inflation rate recorded in September 2022.
On October 19, committee chair Stephen Times wrote to Hunt reminding him that in March, the now prime minister Rishi Sunak committed to uprating pensions next year in line with CPI in September 2022, which sat at 10.1 per cent.
“The gap between the September CPI rate used to increase benefits last April, 3.1 per cent, and the current rate of inflation means that claimants have already seen a large real-terms fall in their income,” Timms wrote.
“The impact of high inflation and the rising cost of living is making this even more critical.”
Timms continued that on the day he sent his letter to Hunt, former prime minister Liz Truss told parliament that she and Hunt were “completely committed” to maintaining the Conservative party’s manifesto pledge on pensions uprating.
“Were this not to be the case… it would be the first time in at least 25 years that the state pension has increased by less than the agreed measure of inflation,” Timms wrote.
In a letter dated November 7, Hunt responded that he wanted “to be honest with people” and said that he would have to make “difficult decisions”.
“I also want to provide reassurance that helping the most vulnerable will continue to be central to our decisions,” he continued.
“As you are aware, the government is required to review the rates of benefits annually to determine whether they have kept pace with price inflation.
“The work and pensions secretary is yet to conduct his review of benefit rates and further detail on the government’s plans will be provided at the Autumn Statement on November 17.”
