Economic Situation Debate

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Department: HM Treasury

Economic Situation

Rebecca Long Bailey Excerpts
Wednesday 12th October 2022

(2 years, 2 months ago)

Commons Chamber
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Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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The Joseph Rowntree Foundation has commented on reports that the Government plan to increase benefits only in line with earnings instead of CPI September inflation, stating that this would amount to the biggest

“permanent deliberate real-terms cut to the basic rate of benefits”

ever made in a single year. Can the Chief Secretary assure my frightened constituents today that, first, these reports are not true and, secondly, that he will uprate benefits in line with CPI inflation in September?

Chris Philp Portrait Chris Philp
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I have already explained, as I think I said yesterday, that there is a statutory process that happens every single year when these decisions get taken. No decision has been taken on the question yet; indeed, the September CPI figure, which is relevant, has not even been published yet. When the decisions are taken, Ministers will of course have regard to the cost of living pressures and high inflation that we and many other countries are experiencing, although of course the energy intervention will make that inflation lower than it would otherwise be. We also, of course, must pay due regard to hard-working taxpayers who ultimately have to pay the benefit bills, and we will take all of that into account when we make the decisions.