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Liz Truss has refused to commit to raising benefits in line with inflation, despite growing pressure from a cabinet minister and senior Tory MPs.

The prime minister said she was “fully committed” to raising pensions, but that “no decision” had been made on the benefit uprate promised by her predecessor Boris Johnson.

Politics Hub: Truss and cabinet minister take different lines on benefits

“It’s very difficult when you are a pensioner to adjust your income in any way,” she told Nick Ferrari on LBC.

“People are facing higher prices. Of course, what we’re doing on the energy price guarantee will help people with those prices. Now, no decision has been made yet on benefit uprating. That decision will be made in due course.”

Asked if she will rule out austerity, she said she has committed to reducing debt as a proportion of national income over the medium term.

“Well, I wouldn’t use the term you describe. What I’m talking about is fiscal responsibility,” she added.

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Ministers hint at cabinet split

Ms Truss is facing a fresh battle with Conservative MPs over a potential benefits squeeze and cuts to public spending, after already being forced into making a policy U-turn on her tax cuts yesterday.

It is understood that Downing Street is considering increasing Universal Credit using a lower metric, such as the increase in average earnings, instead of inflation.

Penny Mordaunt became the first cabinet minister to openly oppose the idea of not uprating benefits with inflation, telling Times Radio: “I’ve always supported – whether it’s pensions, whether it’s our welfare system – keeping pace with inflation. It makes sense to do so. That’s what I voted for before.”

The House of Commons Leader added: “We want to make sure that people are looked after and that people can pay their bills. We are not about trying to help people with one hand and take away with another.”

Ms Mordaunt appears to have taken a different line to Brandon Lewis, the justice secretary – hinting at a cabinet split on the matter.

He refused to give his position when asked about the government’s plans to uprate benefits on Sky News, telling Kay Burley: “There is a process around this that the Department for Work and Pensions, Chloe Smith, the secretary of state, works through.”

He said announcements will be made “over the autumn”, adding: “I’m not going to pre-judge what that will be.”

Read more:
First part of Truss’ reign is over – is there any way back?

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Should benefits rise with inflation?

The comments come after a slew of senior Tories called on the PM to row back on cutting public spending in the middle of the cost of living crisis.

On Monday, senior Conservative MP Damian Green told Sky News: “The government should uprate in line with inflation. The previous government said it was going to, so people are expecting this.”

Former transport secretary Grant Shapps has also stepped up the pressure. Asked if he would want to see benefits increased in line with inflation, he said: “Of course, every politician would want to see that.”

Benefits are usually uprated in line with the consumer price index (CPI) rate of inflation from September, with the rise coming into effect the following April.

The Institute for Fiscal Studies estimates that each percentage point rise in CPI adds £1.6 billion to welfare spending.

The latest row comes as the government dramatically dropped its plans to abolish the 45% tax rate on earnings over £150,000 following widespread criticism, including from Tory MPs.

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Diogo Jota: Liverpool players join mourners as Premier League star and his brother Andre Silva buried in Portugal

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Diogo Jota: Liverpool players join mourners as Premier League star and his brother Andre Silva buried in Portugal

Liverpool players past and present have joined the family and friends of Diogo Jota and his brother Andre Silva for their funeral in Portugal.

A service was held in the Igreja Matriz de Gondomar church in their hometown of Gondomar near Porto in northern Portugal on Saturday morning.

Mourners lined the streets and some in the crowd clapped as the brothers’ coffins were carried into the church.

The funeral – in pictures


Liverpool's captain Virgil van Dijk arrives on the day of the funeral ceremony of Liverpool's Portuguese soccer player Diogo Jota and his b
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Liverpool’s captain Virgil van Dijk. Pic: Reuters

Liverpool's Ryan Gravenberch and Cody Gakpo (right) arrive at the funeral of Diogo Jota and Andre Silva
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Liverpool’s Ryan Gravenberch and Cody Gakpo (right) arrive at the funeral of Diogo Jota and Andre Silva. Pic: PA

Jota, 28, leaves behind his wife of only 11 days, Rute Cardoso, and three young children.

His younger brother, 25, was an attacking midfielder for Penafiel in the second tier of Portuguese football.

Liverpool manager Arne Slot, captain Virgil Van Dijk and teammates including Andy Robertson, Conor Bradley, Ryan Gravenberch, Cody Gakpo, Curtis Jones, Darwin Nunez and Joe Gomez were seen at the service.

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Former teammates Jordan Henderson, James Milner and Fabinho were also there.

Van Dijk carried a red wreath with Jota’s number 20, while Robertson had a wreath featuring number 30, Silva’s number at Penafiel.

Diogo Jota funeral
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Manchester United and Portugal player Bruno Fernandes. Pic: PA


Liverpool's captain Virgil van Dijk and Liverpool's player Andrew Robertson arrive on the day of the funeral ceremony of Liverpool's Portug
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Liverpool’s captain Virgil van Dijk and Liverpool’s player Andrew Robertson. Pic: Reuters

Some of Jota’s teammates in the Portuguese national side also attended, including Bruno Fernandes, of Manchester United, Ruben Dias and Bernardo Silva, of Manchester City, Joao Felix and Renato Veiga, of Chelsea, Nelson Semedo, from Wolves, Joao Moutinho and Rui Patricio.

Ruben Neves was one of the pallbearers after flying in from Florida where he played for Al Hilal in the Club World Cup quarter-final on Friday night.

‘More than a friend’

In a post published on Instagram before the service, he told Jota he had been “more than a friend, we’re family, and we won’t stop being that way just because you’ve decided to sign a contract a little further away from us!”

Jota’s fellow Liverpool midfielder, Alexis Mac Allister, said on Instagram: “I can’t believe it. I’ll always remember your smiles, your anger, your intelligence, your camaraderie, and everything that made you a person. It hurts so much; we’ll miss you. Rest in peace, dear Diogo.”

Porto FC president Andre Villas-Boas and Portugal national team manager Roberto Martinez were also in attendance.

‘With us forever’

Speaking after the ceremony, Martinez said the period since their deaths had been “really, really sad days, as you can imagine, but today we showed we are a large, close family.

“Their spirit will be with us forever.”

The service was private, but the words spoken by the Bishop of Porto, Manuel Linda, were broadcast to those standing outside the church.

He told Jota’s children, who were not at the service, that he was praying for them specifically, as well as their mother and grandparents.

“There are no words, but there are feelings,” he said, adding: “We also suffer a lot and we are with you emotionally.”

The brothers died after a Lamborghini they were travelling in burst into flames following a suspected tyre blowout in the early hours of Thursday morning.

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No other vehicles are said to have been involved in the incident.

Liverpool have delayed the return of their players for pre-season following Jota’s death and players past and present paid tribute to him and his brother on social media.

Flowers have been left outside Anfield, where flags have been lowered to half-mast and all club shops, museums and tours have been closed until Monday.

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

Rachel Reeves has hinted that taxes are likely to be raised this autumn after a major U-turn on the government’s controversial welfare bill.

Sir Keir Starmer’s Universal Credit and Personal Independent Payment Bill passed through the House of Commons on Tuesday after multiple concessions and threats of a major rebellion.

MPs ended up voting for only one part of the plan: a cut to universal credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

Initially aimed at saving £5.5bn, it now leaves the government with an estimated £5.5bn black hole – close to breaching Ms Reeves’s fiscal rules set out last year.

Read more:
Yet another fiscal ‘black hole’? Here’s why this one matters

Success or failure: One year of Keir in nine charts

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Rachel Reeves’s fiscal dilemma

In an interview with The Guardian, the chancellor did not rule out tax rises later in the year, saying there were “costs” to watering down the welfare bill.

“I’m not going to [rule out tax rises], because it would be irresponsible for a chancellor to do that,” Ms Reeves told the outlet.

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“We took the decisions last year to draw a line under unfunded commitments and economic mismanagement.

“So we’ll never have to do something like that again. But there are costs to what happened.”

Meanwhile, The Times reported that, ahead of the Commons vote on the welfare bill, Ms Reeves told cabinet ministers the decision to offer concessions would mean taxes would have to be raised.

The outlet reported that the chancellor said the tax rises would be smaller than those announced in the 2024 budget, but that she is expected to have to raise tens of billions more.

It comes after Ms Reeves said she was “totally” up to continuing as chancellor after appearing tearful at Prime Minister’s Questions.

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Why was the chancellor crying at PMQs?

Criticising Sir Keir for the U-turns on benefit reform during PMQs, Conservative leader Kemi Badenoch said the chancellor looked “absolutely miserable”, and questioned whether she would remain in post until the next election.

Sir Keir did not explicitly say that she would, and Ms Badenoch interjected to say: “How awful for the chancellor that he couldn’t confirm that she would stay in place.”

In her first comments after the incident, Ms Reeves said she was having a “tough day” before adding: “People saw I was upset, but that was yesterday.

“Today’s a new day and I’m just cracking on with the job.”

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Reeves is ‘totally’ up for the job

Sir Keir also told Sky News’ political editor Beth Rigby on Thursday that he “didn’t appreciate” that Ms Reeves was crying in the Commons.

“In PMQs, it is bang, bang, bang,” he said. “That’s what it was yesterday.

“And therefore, I was probably the last to appreciate anything else going on in the chamber, and that’s just a straightforward human explanation, common sense explanation.”

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Diogo Jota and Andre Silva’s funeral in pictures

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Diogo Jota and Andre Silva's funeral in pictures

The family and friends of Diogo Jota and his brother Andre Silva have been joined by Liverpool stars past and present and other Portuguese players at the pair’s funeral near Porto.

The Liverpool forward, 28, and his brother died in a car crash in Spain on Thursday.

Pictures below show the funeral at the Igreja Matriz de Gondomar church in the town of Gondomar near Porto. Click here for our liveblog coverage of the day’s events.

Jota's wife Rute Cardoso arrives for the funeral of him and his brother his brother Andre Silva. Pic: Reuters
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Diogo Jota’s wife Rute Cardoso arrives for the funeral of him and his brother Andre Silva. Pic: Reuters


Liverpool's captain Virgil van Dijk and Liverpool's player Andrew Robertson arrive on the day of the funeral ceremony of Liverpool's Portug
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Liverpool players Virgil van Dijk and Andrew Robertson arrive for the funeral. Pic: Reuters

Liverpool's captain Virgil van Dijk and Liverpool's player Andrew Robertson arrive for the funeral of Diogo Jota. Pic: Reuters
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Van Dijk carried a wreath with Jota’s number 20 while Andrew Robertson’s had a 30 for Andre Silva. Pic: Reuters


Liverpool's captain Virgil van Dijk arrives on the day of the funeral ceremony of Liverpool's Portuguese soccer player Diogo Jota and his b
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Liverpool captain Virgil van Dijk. Pic: Reuters

Portugal's Ruben Neves arrives at the funeral of Diogo Jota and Andre Silva being held at Igreja Matriz de Gondomar in the town of Gondomar near Porto. The Liverpool and Portugal forward died along with his younger brother Andre Silva in the accident in Zamora on Thursday morning. Picture date: Saturday July 5, 2025. PA Photo. Photo credit should read: PA Wire.
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Portugal player Ruben Neves arrives at the funeral. Pic: PA

Liverpool's Joe Gomez and Arne Slot arrive at the funeral of Diogo Jota and Andre Silva being held at Igreja Matriz de Gondomar in the town of Gondomar near Porto. The Liverpool and Portugal forward died along with his younger brother Andre Silva in the accident in Zamora on Thursday morning. Picture date: Saturday July 5, 2025. PA Photo. Photo credit should read: PA Wire.
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Liverpool’s Joe Gomez and manager Arne Slot arrive at the funeral of Diogo Jota and Andre Silva. Pic; PA

Liverpool's Ryan Gravenberch and Cody Gakpo (right) arrive at the funeral of Diogo Jota and Andre Silva
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Liverpool’s Ryan Gravenberch and Cody Gakpo (right) arrive at the funeral of Diogo Jota and Andre Silva

Manchester City and Portugal player Bernardo Silva arrives at the funeral of Diogo Jota and Andre Silva being held at Igreja Matriz de Gondomar in the town of Gondomar near Porto. The Liverpool and Portugal forward died along with his younger brother Andre Silva in the accident in Zamora on Thursday morning. Picture date: Saturday July 5, 2025. PA Photo. Photo credit should read: PA Wire.
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Manchester City and Portugal player Bernardo Silva arrives at the funeral. Pic: AP

The coffins of Diogo Jota and Andre Silva are brought into the Igreja Matriz de Gondomar in the town of Gondomar near Porto. The Liverpool and Portugal forward died along with his younger brother Andre Silva in the accident in Zamora on Thursday morning. Picture date: Saturday July 5, 2025. PA Photo. Photo credit should read: PA Wire.
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The coffins are carried to the church. Pic: PA

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Miguell Rocha played with Jota for around ten years with Gondomar Sport Clube in Portugal.

People line up as they wait to enter at a church where the bodies of Liverpool forward Diogo Jota and his brother Andr.. Silva have been brought for a wake and funeral in Gondomar, near Porto, Portugal, on Friday, July 4, 2025. (AP Photo/Manu Fernandez)
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People line up to enter the church. Pic: AP


Pallbearers carry the coffins of Liverpool's Portuguese soccer player Diogo Jota and his brother Andre Silva, who died in a car crash near
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Pallbearers carry the coffins of Diogo Jota and his brother Andre Silva

Pallbearers carry the coffins of Liverpool's Portuguese soccer player Diogo Jota and his brother Andre Silva, who died in a car crash near Z
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Pic: Reuters

People crowd outside the church during the funeral of Diogo Jota and his brother Andr.. Silva, in Gondomar, near Porto, Portugal, on Saturday, July 5, 2025. (AP Photo/Manu Fernandez)
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Pic: AP


People gather outside the Chapel of the Resurrection, on the day of the funeral ceremony of Liverpool's Portuguese soccer player Diogo Jota
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People gather outside the Chapel of the Resurrection. Pic: Reuters

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The former captain was seen wiping away tears as he read messages and laid his tribute down.

Fans pay their respects outside Anfield Stadium, on the day of the funeral of Liverpool soccer player Diogo Jota in Portugal, in Liverpool,
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Fans pay their respects outside Anfield in Liverpool. Pic: Reuters


A board displays a picture of Liverpool soccer player Diogo Jota as tribute on the day of his funeral in Portugal, outside Anfield Stadium
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A board with a picture of Diogo Jota outside Anfield Stadium. Pic: PA

The coffins of Diogo Jota and Andre Silva are brought into the Igreja Matriz de Gondomar in the town of Gondomar near Porto. The Liverpool and Portugal forward died along with his younger brother Andre Silva in the accident in Zamora on Thursday morning. Picture date: Saturday July 5, 2025. PA Photo. Photo credit should read: PA Wire.
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The coffins are carried to the church. Pic: PA

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