Millions of people on Universal Credit will lose hundreds of pounds as Rishi Sunak threatens to cut them

More than six million people on Universal Credit will be worse off if Rishi Sunak decides not to increase benefits in line with inflation in the fall statement

Rishi Sunak refused to commit to inflation-proof benefit increases next year (

Image: PA)

Rishi Sunak tonight threatened to strip hundreds of pounds from millions of desperate families fighting for universal credit.

Speaking at the G20 summit in New Delhi, the prime minister refused to commit to increasing inflation-proof benefits next year, arguing that payments had already increased by a “huge amount”. Chancellor Jeremy Hunt is thought to be considering a reduction in real terms this autumn. Payments typically increase each April by the previous September's inflation figure - which is expected to be 6.9%. But the government is considering a lower figure, leaving 6.1 million people on UC worse off.

A rise of 1% below inflation would result in a loss of £220 for a low-income working couple with two children. Asked if he could guarantee benefits would continue to rise with inflation, Mr Sunak declined but insisted he would “ensure we look after the most vulnerable”.

He added: “This year benefits have increased by 10%. On average this would be £600 for a typical person on UC, over £800 for the state pension. We've helped pay energy bills this year, we've provided cost of living payments. There are many different ways to provide help to people who need it. »

Katie Schmuecker of the Joseph Rowntree Foundation said last night: “Our benefit levels are already completely inadequate and anyone suggesting they should be reduced further is clearly out of touch with the reality of life in the UK today. Anyone who shops at the supermarket or pays their bills knows that the cost of basic necessities continues to rise rapidly - and that's what low-income people spend most of their money on. »

Labour said: “This is government speculation and kite flying. Instead, let's look at their record: 24 tax increases, a decade of stagnant economic growth, and worse things for people. »

Last year, Liz Truss considered no longer increasing benefits in line with inflation, but abandoned the plan following widespread condemnation.

At the G20 summit yesterday, Mr Sunak spoke with Indian Prime Minister Narendra Modi as he tried to advance a trade deal. The Prime Minister was joined on the trip by his wife Akshata Murty, who is the Indian billionaire's daughter. Narayana Murthy.

He paid tribute to her, saying: "I love her a lot and it's nice to have her traveling because frankly we don't spend a lot of time together. The most time I spend with these These days it's when she gets to sit on a plane with me...obviously part of these trips is building personal relationships with other leaders. There are a lot of things that go into play in building these personal relationships, including how we interact with other people's spouses."

Mr. Sunak, who has reshuffled his cabinet five times since becoming prime minister last October following a series of sordid scandals, yesterday suggested he could make another change shortly. He was asked if his current frontbench was the team he would lead...