Iain Duncan Smith is the latest senior Tory to speak out against cutting benefits by not uprating them in line with inflation. The former work and pensions secretary and party leader told a ConservativeHome fringe on Universal Credit this morning that he thought it was a ‘peculiar debate’ to be having, adding:
Almost certainly there would have to be a vote [on changing the benefits calculations] because it’s automatic. And therefore if you freeze it or change it, then that will be changing the system. My personal view is I don’t see what will be gained by it. But I do see what will be gained by making sure that they have enough money through the winter. Because, as I say, that money will flow back into the economy at the very time that we need the economy to be growing. That’s one of the ways in which the economy will be supported from the bottom.
He backed Liz Truss to be leader, supporting her fight back against the ‘Treasury orthodoxy’
He reminded the audience that he resigned back in 2016 over George Osborne’s planned cuts to disability benefits, and that ‘to repeat that mistake would be wrong at this stage’. As the fringe ended, he was told by host Paul Goodman that he hoped those in government were listening to the points he was making, and IDS replied shortly: ‘They’re not.’
This isn’t just significant because of Duncan Smith’s knowledge of the benefits system. It is also worth pointing out that he backed Liz Truss to be leader, supporting her fight back against the ‘Treasury orthodoxy’. IDS’s dealings with the Treasury when he was in the Work and Pensions department were never positive, partly because the Treasury is suspicious of big spending projects like Universal Credit, and partly because the minister did not get on with Osborne. IDS was offered a cabinet position, but turned it down, with those close to him suggesting he wasn’t happy with the offer of Leader of the House when he wanted to be running another delivery department. The MP who took the Leader of the House job was Penny Mordaunt, who has spoken out on the benefits uprating row too.
Duncan Smith did tell the fringe that he wasn’t even sure if this was a debate that was actually happening in Downing Street, but the line Liz Truss and others have been using is that no decision has been made yet on whether to update in line with inflation or instead in line with wages. The review is taking place this autumn, but the size of the row at this conference already suggests that a decision may need to be taken ahead of schedule to stop this from becoming another revolt, which would leave Truss even weaker.
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