GBNews published this video item, entitled “Benefits should rise with inflation, says former Tory leader Sir Iain Duncan Smith” – below is their description.
Former Tory leader Sir Iain Duncan Smith has called for benefits to be immediately uprated in line with inflation to provide a “shield” against the sting of mounting living costs.
He said rebates and discretionary funds represent “a step in the wrong direction for tackling poverty”, arguing it would be better to uplift Universal Credit (UC) as it “links benefits to work”.
It comes after Boris Johnson said he cannot “magic away” all the soaring food and energy expenses, as he came under increasing pressure to alleviate the cost-of-living crisis.
The Government is already handing out £150 council tax rebates for many homes and will take £200 off energy bills from October. But campaigners say this will not be enough for many people.
The recommendation to bring benefits in line with inflation is set out in new report from the Centre for Social Justice (CSJ) – a think tank founded by Sir Iain in 2004 – calling for a “special fiscal event”, funded by above-forecast tax receipts, to ease the strain on cash-strapped households.
UC payments rose by 3.1% in April, in line with the Consumer Prices Index (CPI) rate of inflation in the year to September 2021.
Meanwhile, CPI inflation rose to 9% in the year to April, Office for National Statistics (ONS) data signalled on Wednesday, up from an already high 7% in March.
In its report, the CSJ says the Government should consider reviewing the rate of benefits quarterly, rather than annually, at least as long as the “current period of unusual inflationary pressure” lasts.
The think tank says the first increase should come at the end of June.
It claims that bringing UC in line with inflation would see over four million households gain an average of £729 extra support to stave off the cost-of-living crisis over the coming year.
As part of its package of recommendations, the CSJ is also calling for an increase to UC work allowances, which would provide “an effective tax cut” for 1.66 million poorer, working households, worth £733 million, or on average £442 each.
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