Liz Truss is facing a Cabinet revolt on plans to cut benefits to balance the books – as Kwasi Kwarteng U-turns again by bringing forward his spending blueprint and OBR forecasts to this month.
The PM is set to defy dozens of Tory MPs by uprating benefits in line with earnings rather than inflation next year, meaning a real-terms cut.
She will argue it would be unfair to go beyond what workers are receiving, and the move will save the government around £7billion.
But speaking to Times Radio, Commons leader Penny Mordaunt – who fought Ms Truss for the leadership this summer – said it ‘makes sense’ to increase benefits in line with inflation. She said: ‘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.’
One Cabinet minister told MailOnline: ‘Who has been briefing this stuff? Are we really going to do it? I can’t see how it is possibly going to happen.
‘I am a…