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Truss Pressured to U-Turn and Lift Benefits With Inflation

  • Weakened Truss already reversed course on tax cut, fiscal plan
  • PM plans charm campaign to regain support of mutinous Tories
Bloomberg business news
£300B Wiped From UK Markets in Truss' First Month as PM
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Prime Minister Liz Truss is under sustained pressure from all wings of her ruling Conservative Party to lift UK welfare payments by the rate of inflation, rather than the rise in earnings, the latest in a series of rows with her mutinous party after just over a month in office.

Truss earlier this month hinted she’s considering uprating benefits in line with wages -- a move that could save the public purse around £5 billion ($5.5 billion) -- despite a promise by her predecessor, Boris Johnson, to match inflation. But she’s facing opposition from MPs in her own Conservative Party, including members of the cabinet, over concerns about giving some of the most vulnerable people a real-terms cut in their income in the middle of a cost-of-living crisis.