Rishi Sunak says technical problems stopped him raising benefits more
Rishi Sunak has claimed he was prevented from raising benefits more at the spring statement because of the old computer system used by the Department for Work and Pensions.
Acknowledging that technical problems “sounds like an excuse”, the UK chancellor told Bloomberg he had discussed a higher rise than the 3.1% given across the board but was told there could be an uplift only once a year for people on some benefits.
Sunak highlighted the increase in the “national living wage”, the changes to the universal credit taper rate and discretionary support from councils as measures the government has done to help the lowest paid.
But the claim of computer problems was labelled “pathetic” by Jonathan Ashworth, the shadow work and pensions secretary, while Angela Rayner, the Labour deputy leader, said the chancellor was “insulting your intelligence”.
Many experts believe raising benefits would be the quickest and most effective way of helping the lowest-paid with the squeeze on living standards caused by inflation.
The government has come under fire for raising benefits by 3% when inflation is running at 7% and is forecast to hit 10% by the end of the year.
“The operation of our welfare system is technically complicated,” Sunak said. “It is not necessarily possible to [increase benefits] for everybody. Many of the systems are built so it can only be done once a year, and the decision was taken quite a while ago.”
He acknowledged that blaming the technology “sounds like an excuse” but insisted he was “constrained somewhat by the operation of the welfare system”.
Ashworth highlighted the speed with which ministers acted to take away the £20 uplift in universal credit given to people during the pandemic – the biggest single cut to social
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