Jeremy Hunt has been accused of trying to “punish” disabled people while proposing tax cuts in the hope of turning around the Conservatives’ electoral prospects.
The chancellor is planning to use the autumn statement to reduce the tax burden on firms and individuals in order to encourage economic growth and win back disgruntled voters.
He says that the government is turning a corner after spending billions during the pandemic, claiming that his actions demonstrate that the Conservatives “reject big government, high spending, and high tax.”
However, hundreds of thousands of people with mobility and mental health issues are about to be warned that their benefits will be reduced by £4,680 per year unless they find work from home.
Sarah White, from Sense, the disability charity, said the move “looks sets to punish disabled people, adding more anxiety on to disabled households that are already struggling”.
The row over the plans erupted as:
- Treasury minister Laura Trott said falling inflation meant ministers could focus on cutting taxes for individuals as well as businesses.
- Mr Hunt received a significant boost as official figures showed the government had borrowed nearly £17 billion less than predicted this year.
- Former Tory leader Lord Hague said getting people back to work was “urgent” to balance the nation’s finances.
- The governor of the Bank of England warned inflation was still a threat.
- The Treasury confirmed a pay rise for nearly three million workers – with the national living wage to rise to £11.44 in April.
Ministers claim that because of the post-Covid increase in distant positions, many people on benefits can no longer be “written off” as unable to work.
Laura Trott, chief secretary to the Treasury, said people had to do their “duty”. “If they are able to go out to work they should,” she said.
“Those who can work and contribute should contribute.”
But charities condemned the plans. James Taylor, from the disability equality charity Scope, said: “These proposals are likely to force disabled people to look for work even when they aren’t well enough.”
He added: “Threatening disabled people with more sanctions will not lead to more disabled people getting into and staying in work. Forcing disabled people into unsuitable jobs and cutting financial support in a cost of living crisis will be disastrous.”
Mr Hunt has said he will use the autumn statement to boost business investment and get people back into work “to deliver the growth our country needs”.