London Daily

Focus on the big picture.
Friday, Nov 21, 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
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
×