London Daily

Focus on the big picture.
Sunday, Mar 29, 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
Thousands Rally in London to Oppose Rise of Far-Right Movements
Hong Kong Official Rejects Allegations of Surveillance Orders Targeting UK-Based Dissidents
PayPal Expands Cryptocurrency Services to Allow UK Users to Buy and Sell Bitcoin
UK Minister Challenges Reform Party’s ‘Pro-Family’ Agenda as Debate Intensifies
Concerns Grow Over Meningitis Risk Among UK Students Amid Warning Signs of New Outbreaks
Japanese Grand Prix 2026: Schedule, UK Start Times and Full Broadcast Details
Electric Vehicles Seen as Strategic Solution to UK Fuel Reserve Concerns
Rise of Lone-Actor Threats and Online Radicalisation Drives New Wave of Antisemitic Attacks in the UK
Canada Advances Plan to Ban Cryptocurrency Donations in Election Campaigns
UK Faces Looming Medicine Shortages as Iran Conflict Threatens Supply Chains
Deadly Meningitis Outbreak in the U.K. Highlights Urgent Need for Vaccination
Fresh Claims Emerge Over Harry and Meghan’s Australia Visit as Insider Speaks Out
NATO Assessment Indicates UK Defence Spending Has Fallen Below Alliance Average
FTSE 100 Slips as Middle East Tensions Weigh on Investor Sentiment
UK Economy Begins to Feel Early Impact of Iran Conflict as Policy Challenges Intensify
Russian National Jailed in UK After Assault Case Linked to Barron Trump’s Alert
Energy Price Surge Accelerates Shift Away from Fossil Fuels in UK Homes
UK Museums House More Than 260,000 Human Remains, New Report Reveals
Surging UK Gilt Yields Reflect Inflation Pressures and Fiscal Uncertainty
UK Issues Updated Guidance on Children’s Screen Time with Focus on Balance and Wellbeing
UK Migration Figures Show Shifting Trends Across Asylum, Visas and Channel Crossings
UK Watchdog Launches Probe into Five Firms Over Alleged Fake Reviews and Ratings
Jaguar Land Rover Halts Production at UK Plant Amid Supplier Disruption
UK Police Reverse Position, Confirm Arrests Will Resume for Palestine Action Protests
UK Small Businesses Face Europe’s Steepest Cost Pressures, New Survey Reveals
US Envoy Urges UK to Proceed with King’s Visit Amid Diplomatic Sensitivities
FTSE 100 Drops Over One Percent as Middle East Tensions Weigh on Markets
UK CO2 Plant Set to Reopen as Authorities Move to Safeguard Supplies Amid Middle East Tensions
Trump Urges Stronger Defence Investment as He Questions Allied Naval Capabilities
New COVID Variant Detected in UK Raises Concerns Over Vaccine Effectiveness
FTSE Russell Moves to Standardise Free-Float Rules for UK and International Listings
HBO Max Launches in UK and Ireland, Marking Major Step in Global Streaming Expansion
UK Signals Readiness to Seize Russian ‘Shadow Fleet’ Vessels in Escalation of Sanctions Enforcement
Escalating Middle East Conflict Seen as Major Threat to UK Economic Stability
Early Challenges Mark Prince Harry and Meghan’s Australia Visit
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
×