Liz Truss faces another rebellion from MPs over squeeze on benefits

Truss will speak at Conservative Party conference on Wednesday.

Prime Minister Liz Truss faces another rebellion from Conservative MPs over squeeze on benefits Flickr

Liz Truss is facing another rebellion from Conservative MPs over a proposed real-terms cut to benefits.

The Prime Minister has been urged to increase benefits in line with inflation.

However, Truss has so far refused to commit to doing so, while insisting that the Government must be “fiscally responsible” and bring down debt.

An official decision on benefits has not yet been made, although work and pensions secretary Chloe Smith has indicated that one will be “taken in due course”.

Failing to keep pace with rising prices would leave some of the poorest households facing a real-terms cut in their incomes.

Michael Gove, former Cabinet minister, told Times Radio that he would need “a lot of persuading” to stop benefits from rising in line with inflation.

Former work and pensions secretary Damian Green also warned the Government that a freeze or cut to benefits would not get through the Commons.

The backlash over benefits comes shortly after Chancellor Kwasi Kwarteng announced a major U-turn on plans to abolish the 45p tax rate for higher earners.

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Conservative MPs were threatened with having the whip removed if they voted against the measure.

However, Kwarteng confirmed on Monday morning that the plans would be dropped.

“It is clear that the abolition of the 45 tax rate has become a distraction from our overriding mission to tackle the challenges facing our country,” he said in a statement.

“As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate.

“We get it and we have listened. This will allow us to focus on delivering the major parts of our growth package.”