Inflation

Kiran Stacey

We revealed earlier this month that George Osborne was considering slashing the benefits bill by linking them to earnings (which are stagnant), rather than inflation (which is rising fast).

Since then, the chancellor has been locked in a battle, not only with Nick Clegg, but also Iain Duncan Smith, the Tory work and pensions secretary, about whether the government should do this, having previously said benefits would rise in line with CPI.

If Vince Cable is to be believed, it looks like IDS and his Lib Dem allies have won this one. The business secretary told the BBC’s Politics Show: Read more

Are the coalition being a little unfair in the way they uprate student loans?

After all, George Osborne made a big play of how it was right to adjust all benefits by the Consumer Price Index rather than the Retail Price Index. Read more