London Daily

Focus on the big picture.
Saturday, Dec 13, 2025

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
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
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
×