London Daily

Focus on the big picture.
Thursday, Mar 26, 2026

Tory conference: Rebellion in the air over possible benefit squeeze

Tory conference: Rebellion in the air over possible benefit squeeze

This has not been an easy party conference for the government.

Some in Birmingham think it's been a disaster.

First, a colossal U-turn on the 45p tax rate, then being forced to bring forward the next step of the chancellor's economic growth plan under pressure from Tory MPs.

Now, there's another mutiny brewing over benefits - and how much they should go up by.

Boris Johnson's government promised that working-age benefits would go up in line with inflation.

His successor as PM, Liz Truss, has pledged that pensions will continue to be linked to inflation but has pointedly not made the same commitment when it comes to welfare payments like universal credit.

It means a rise in working-age benefits could be linked to wages instead.

The government has said no final decision will be made for a few weeks yet. But rebellion hangs in the air here in Birmingham and it's likely to follow the prime minister back to Westminster.

A growing number of Conservative MPs are making it clear where they stand - and remarkably, that goes all the way up to the cabinet.

Take Commons leader Penny Mordaunt.

"We are not about trying to help people with one hand and take away with another," she told Times Radio.

Remember, cabinet ministers are supposed to toe the government line. This is not an example of biting your tongue.

Then there's the former Tory leader - and one of the main architects of the universal credit system - Iain Duncan Smith, who has urged benefits to rise in line with prices.

He told the BBC: "Do the right thing for those who are poorest.

"The money you give into this area to deal with the worst off will go straight back into the economy, so that will help growth, ironically, at a time when we need growth rather than recession."

There is a debate going on in government over the best way to proceed.

One argument being made in Downing Street is that it is unfair to urge workers to accept below inflation wage rises, then to give inflation-matched increases in benefits.

Hence the suggestion the rises in benefits could be limited to the average salary increase.

One minister who sits around the cabinet table also argues the government needs to be prepared to have "a conversation" with the public about the benefits system.

They argue the drive for growth requires people to be in work, earning more money.

But there is significant concern in the Conservative Party about the idea of real-terms benefits cuts during a cost-of-living crisis.

Work and Pensions Secretary Chloe Smith is among those to have argued the government needs to protect the most vulnerable in society.

She told the conference: "We do understand that these are very anxious times for people, we know that people are struggling with some of the costs that are rising. That's why protecting the most vulnerable is a vital priority for me and to this government."

It'll be her job to conduct review of benefit levels. It's common for people in the job to back higher rather than lower benefits. Her allies haven't contested suggestions she wants to secure an inflation-level increase.

"I suspect we'll end up with something close to inflation because of parliamentary pressure," says one minister I spoke to on Tuesday morning.

So where does this all end up? Is the move now inevitable? Some think so, like the former cabinet minister Damian Green who says the prime minister would lose any vote in Parliament on below-inflation benefits.

But remember three things:

1. There are many Tory backbenchers who would support limiting increases

2. The last time there was a debate over benefits, the government stuck to its guns and refused to maintain the £20 a week universal credit uplift

3. The government is going to have to outline its plans to reduce debt in the medium terms. That's likely to mean significant spending cuts and less money to go around.

Newsletter

Related Articles

0:00
0:00
Close
UK Government Rejects Cover-Up Claims After Theft of Former PM Aide’s Phone
Cyprus Opens Strategic Talks with UK Over Sovereign Base Areas
UK Faces Risk of Sharp Inflation Surge Despite Stable Pre-Crisis Figures
UK Police Arrest Two Over Suspected Antisemitic Arson as Iran Link Investigated
UK Inflation Holds at Three Percent Ahead of Oil Price Shock from Iran Conflict
UK Fuel Prices Face Upward Pressure as Global Oil Trends Raise Cost Outlook
Girlguiding UK Sets September Deadline for Membership Policy Change Affecting Trans Participants
Germany and UK Accelerate Wind Power Expansion to Strengthen Energy Security
UK Moves to Ban Cryptocurrency Donations to Political Parties Over Foreign Influence Concerns
UK and Turkey Finalise Major Air Defence Agreement Worth Billions
Apple Introduces Mandatory Age Verification for iPhone Users in the UK
Diverging Views Emerge Over Meghan Markle’s Planned Australia Appearance
Trump Signals Frustration with UK Leadership Amid Diverging Approaches to Iran Conflict
UK Government Takes Control of Hunterston B as Landmark Nuclear Decommissioning Begins
UK Public Inflation Expectations Jump Sharply in March, Raising Pressure on Bank of England
UK Ministers Warn Expanded North Sea Drilling Would Deepen Exposure to Global Energy Volatility
Delayed UK Defence Investment Plan Leaves Suppliers Under Severe Financial Strain
Can Iran Strike the UK? Assessing the Real Military Threat as Conflict Escalates
Sanctioned Iranian Banker Linked to Luxury Marbella Villa Through UK Corporate Structure
Casey Bloys Navigates HBO Max UK Launch, Paramount Integration and Industry Buzz Over Netflix Meeting
Iran Conflict Sparks Sharp Turbulence in UK Mortgage Market, Reaching Pandemic-Era Disruption Levels
Major Donor Urges University of Kentucky to Reconsider Mitch Barnhart’s Post-Retirement Role
United Kingdom Moves to Lead International Effort to Reopen Strait of Hormuz
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
×