A Greater Manchester MP is leading calls for the government to raise benefit payments in line with inflation ahead of the autumn statement tomorrow (November 22). Oldham East and Saddleworth MP Debbie Abrahams has written to Chancellor Jeremy Hunt warning that a real-terms cut in social security payments would 'bring misery' to hundreds of thousands of families in the country.
The letter has been signed by three Northern mayors, including Andy Burnham, and four former work and pension secretaries. It comes amid speculation that the government will break with convention by not using September's higher rate of inflation to set benefits for next year.
Yesterday (November 20), Prime Minister Rishi Sunak hit out at what he called the 'national scandal' of around two million Brits 'not working at all'. Speaking in London ahead of the autumn statement, he vowed to 'do more to support those who can work to do so'.
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Ms Abrahams, who is a member of the Work and Pensions Select Committee, has argued that the case for uprating welfare payments in line with inflation is not just a moral one, but a pragmatic one too. In the letter signed by eight senior politicians, she said that the move would improve the population's health and increase the country's productivity at a time when it is lagging behind others.
The letter reads: "A failure to increase payments in line with inflation in this year's Uprating Order would lead to a real terms loss of income for some of the most vulnerable people in society during a cost of living crisis, including working people on low incomes, households with children, and disabled people on Universal Credit Limited Capability to Work and Work-Related Activity."
Disability equality charity Scope has also warned against real terms cuts to benefits. Head of Policy Louise Rubin said: "Rushing through real terms cuts to benefits and more stringent benefits sanctions in a cost-of-living crisis would be deeply destructive."
Ms Abrahams addded: "At the height of a cost of living crisis a real terms cut in social security payments would bring misery to hundreds of thousands of families across our country. The [Department for Work and Pensions] Select Committee’s safeguarding inquiry has already shown us the horrific impacts of a punitive approach to social security.
"That’s why this letter to the Chancellor has been so well supported by both former Secretaries of State responsible for social security and the Metro Mayors for the three biggest city regions in the North. I sincerely hope that it helps to shift the dial in the Treasury and ensure that the Chancellor uses the Autumn Statement to support the most vulnerable."
The Treasury and the Department for Work and Pensions have been contacted for comment. A government spokesperson said: "We know the challenges disabled people are currently facing.
"That is why we uprated benefits and the state pension by over 10 pc this year and are providing up to £900 in cost of living payments, as well as a £150 disability support payment, whilst continuing to bear down on inflation to help people’s money go further. We are also supporting the most vulnerable with energy costs this winter, helping up to three million families with £150 off their bills through the Warm Home Discount Scheme."