
Benefits claimants would see the value of their payments cut under plans which threaten to create new tensions between the Coalition parties.
Conservative ministers are said to be considering moves to break the link between benefits payments and inflation.
A senior Liberal Democrat yesterday warned that the party would oppose any such change, which would reduce the value of benefits in real terms.
Under current laws, most benefits rise in line with inflation. That meant a 5.2 per cent increase in many benefits this year, while many workers faced pay freezes or below-inflation rises.
The prospect of claimants receiving larger rises than people in employment angered many Tories. David Cameron raised questions about the inflation link in a speech this year. "Given that so many working people are struggling to make ends meet, we have to ask if this is the right approach," the Prime Minister said.
The Treasury is pressing for an additional ?10 billion of cuts in benefits spending from 2015, causing speculation about possible savings.
Link: Benefits could be cut to fall in line with salary increases - Telegraph



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