London Daily

Focus on the big picture.
Wednesday, Dec 03, 2025

PM promises to examine raising universal credit in line with inflation

PM promises to examine raising universal credit in line with inflation

Boris Johnson was questioned at the liaison committee about the plight of those dependent on universal credit
Boris Johnson promised to examine a proposal to increase universal credit in line with inflation, as he was grilled by a high-powered committee of MPs over the cost of living crisis.

Questioning the prime minister as part of the liaison committee, Mel Stride MP highlighted the plight of those people dependent on universal credit, calling it a “hole”, in Rishi Sunak’s spring statement last week.

“Those people are going to really suffer,” said Stride, a Conservative former treasury minister who now chairs the Treasury select committee.

The liaison committee is made up of the chairs of the various House of Commons select committees, and the prime minister traditionally appears three times a year.

Stride suggested increasing universal credit in line with current inflation rates – instead of the 3.1% uprating due in April – would ultimately cost the treasury no more money, as it would mean a smaller increase next year.

“It would be fiscally neutral to reexamine and re-index those benefits say in a couple of months time,” he said.

Johnson told him, “I’m going to have to go and look at how you’d do it in a fiscally neutral way: but what we want to do is to look after people in the aftershocks of the pandemic as much as we have during the pandemic, and the aftershocks are proving to be really quite challenging”.

Sunak’s spring statement included a 5p cut in fuel duty and a significant increase in the national insurance threshold; but was widely criticised for failing to do enough to help those people struggling most with the cost of living.

Johnson himself said the next day the government needs “to do more”.

Labour MP Stephen Timms pressed Johnson on the plight of the unemployed. He responded by repeatedly stressing the importance of getting more people into jobs.

“We want to support people into work wherever possible. We think that the way out of poverty is to help people into work, and all the evidence is that that works,” he said.

The hearing also covered Ukraine, with Johnson defending the government’s refugee schemes.

He described the 25,000 visas granted so far in total as “not a bad number so far”, adding, “they’re being handled at a rate of a thousand a day. The numbers will mount now quickly”.

Asked if the scheme was too bureaucratic, he said, “what I wanted was a system that was as light touch as possible, and would enable people to come here but would enable us also to do checks”.

The prime minister said he believes western countries should continue to ratchet up sanctions against Russia, until troops are withdrawn.

“I certainly don’t think that you could expect the G7 to lift sanctions just because there’s a ceasefire: that goes straight into Putin’s playbook. In my view, we should continue to intensify sanctions with a rolling programme until every single one of his troops is out of Ukraine,” he said.

The prime minister also appeared to question the French president’s decision to maintain close contacts with Vladimir Putin.

Asked whether Emmanuel Macron’s was the right approach, Johnson said, “I think it’s very, very important that the unity of the west and the unity of Nato should be remembered and prioritised, and that’s what we’re doing.”

He added, “the question of negotiation with Vladimir Putin, of the value of those negs, is an open one: my own view is that Putin is plainly not to be trusted.”

The committee’s usual chair, Bernard Jenkin, was unable to attend Wednesday’s hearing as he is self-isolating with Covid.
Newsletter

Related Articles

0:00
0:00
Close
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
×