Savings

Millions stand to lose thousands in savings and may have to sell homes as Jeremy Hunt hints at delayed welfare reform

MILLIONS of hard-core Britons could lose thousands in savings as Jeremy Hunt plans to delay massive welfare reforms by a YEAR.

The new chancellor is said to be weighing yet ANOTHER U-turn in government policy after ripping last month’s mini-budget to shreds, according to The temperature.

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Jeremy Hunt seen leaving his London home this morningCredit: Darren Fletcher

This time the culprit is a promised cap of £86,000 on how much any adult will have to spend on social care over their lifetime.

The news comes as inflation hit an appalling 10.1% today.

The social care cap was introduced by Boris Johnson earlier this year and was due to start in October 2023.

The former Prime Minister has proposed a plan so that Britons don’t have to sell their homes to pay for care.

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And the 2019 Tory manifesto vowed that welfare reforms should ‘ensure that no one in need of care has to sell their home to pay for it’.

With the cap delayed for a year, some adults in need could be forced to spend thousands of dollars more than they otherwise would have had to – or even sell their homes to pay for assistance.

Mr Hunt has not ruled out giving up any promises of money in order to get the UK economy back on track.

Financial markets fell after former chancellor Kwasi Kwarteng unveiled the disastrous mini-budget last month.

This caused the pound to fall and mortgage rates to rise.

Mr. Hunt was brought in by Mrs. Truss to calm the nerves in the town.

But to do this, the mini-budget had to be torn to pieces.

A promised 1p income tax cut has been postponed indefinitely and a corporation tax cut, due next year, has been scrapped.

The energy price guarantee – which provides for average bills capped at £2,500 – will now only run until April, instead of October next year.

The Chancellor will not commit to increasing benefits in line with inflation.

And even the triple pension lock is under threat.

If removed, around PAO12million would be affected, with some pensioners at risk of being £12,000 worse off.

Yesterday a spokesperson for No10 said: “We are acutely aware of the number of vulnerable pensioners and indeed our priority…is to continue to protect the most vulnerable in society.

“The Prime Minister and Chancellor are not making any commitments on individual policy areas at this stage.

“But as I say, decisions will be made through the lens of what matters most to the most vulnerable.”

The government is facing fresh pressure today to explain to hardened Britons how they will be helped through the cost of living crisis, as inflation soared into double digits.

Responding to the staggering rate, Mr Hunt said this morning: ‘I understand that families across the country are grappling with rising prices and higher energy bills.

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“This government will prioritize helping the most vulnerable while ensuring broader economic stability and spurring long-term growth that will benefit everyone.

“We have acted decisively to protect households and businesses from significant increases in their energy bills this winter, with the government’s energy price guarantee limiting the spike in inflation.”