Liz Truss has contradicted her new chancellor Jeremy Hunt and announced pensions will rise in line with soaring inflation – after suggestions the pledge would be dumped.
“I have been clear that we are protecting the triple lock on pensions,” the beleaguered prime minister told MPs.
But, moments later, Ms Truss refused to make a similar commitment to increase benefits in line with inflation that has topped 10 per cent again.
She declared the crucial “budget” on 31 October would “make sure that the most vulnerable are protected” – but declined to rule out a below-inflation rise next April.
As she fights for her political life – stealing Peter Mandelson’s line to insist she is “a fighter and not a quitter” – she also refused to rule out a real-terms cut to carers allowance.
But there were howls of laughter as the prime minister, after the disaster of the mini-budget and multiple U-turns, demanded “some reflection of economic reality” – from Labour.
The confusion over the triple lock is the first evidence of apparent disagreement between No 10 and No 11 since Mr Hunt was brought in to save the government.
It was the chancellor who first said, on Monday, that a the promise of inflation-proofed pensions might have to be ditched – in his search for “eye-watering” emergency cuts.
Ms Truss’s spokesman echoed that position on Tuesday, but has now reversed the stance after some Tory MPs spoke out – although it is unclear whether she had Mr Hunt’s agreement.
After prime minister’s questions, No 10 said the pair discussed pensions on Wednesday morning and agreed the new position, but refused to say who initiated the talks.
In the Commons, Keir Starmer attacked the government for having “crashed the economy”, saying: “Those spending cuts are on the table for one reason and one reason only, because they crashed the economy.
“Working people are going to have £500 more a month on their mortgages and what’s the prime minister’s response? To say she’s sorry.
“What does she think people will think and say that’s alright, I don’t mind financial ruin at least she apologised.”
But the prime minister replied: “I do think there has to be some reflection of economic reality from the party opposite. The fact is that interest rates are rising across the world and the economic conditions have worsened.
“And we are being honest, we’re levelling with the public unlike him, who simply won’t do it and what is he doing about the fact that workers, train workers are again going on strike.”
Attempting to deflect the crisis engulfing Downing Street, Ms Truss told the Labour leader: “He backs the strikers, we back the strivers.”
