Conservatives demand Healey acts on inflation as families face double whammy of rising costs
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Cost of living soaring at the same time as inflation alone adds
more than £4 billion cost to just three types of benefits
Hardworking families paying more for the essentials while more and
more of their taxes are spent on benefits Conservatives are the
only party that will cut taxes and cut the welfare bill The
Conservatives are today [Wednesday 21st October 2026] demanding
that Chancellor John Healey acts on inflation at the Budget as
hardworking families'...Request free
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The Conservatives are today [Wednesday 21st October 2026] demanding that Chancellor John Healey acts on inflation at the Budget as hardworking families' finances face a double whammy of costs. Prices have increased by 7.3 per cent under Labour. Families are facing higher prices at the checkout at the same time as they shell out more and more in tax to fund welfare payments. Higher inflation means higher welfare costs, as benefits increase in line with prices. Inflation is currently at 3.1 per cent, well above the Bank of England's target and well above the rate when Labour entered office in July 2024, while inflation alone is set to increase just three types of welfare payment by a total of more than £4 billion. Every month that Labour fail to bring inflation down means higher costs for hardworking families and a higher benefits bill paid to those who don't work. For just three benefits (Universal Credit, Disability Living Allowance and Personal Independence Payment), the Consumer Price Index (CPI) uplift is set to cost £4.33 billion. If the inflation rate was on target at 2 per cent, as it was when the Conservatives left office, that would save £1.54 billion of taxpayers' money just on these three benefits. Inflation is widely expected to rise on Wednesday as the latest statistics are released. Rising food prices are a key factor in driving the increase, with farmers and distributors tackling higher energy bills thanks to Labour's net zero obsession, alongside other cost pressures including the impacts of Labour's Jobs Tax. The Food and Drink Federation has warned that food inflation is set to reach 4 per cent by Christmas and peak at 6.4 per cent in July 2027, well in excess of the overall rate of inflation. And the Fresh Produce Consortium this week warned that Labour's EU reset could mean £300 million more in costs for the industry, pushing prices up further for customers. Meanwhile the energy price cap has increased by £367 under Labour, and diesel prices have reached a record high, with petrol at its highest since 2022. Yet instead of backing the people who put food on our tables, and those who run the pubs, restaurants and cafes we all love, Labour have launched a series of punitive tax raids on them. From the Jobs Tax to the Family Farm and Family Business Taxes to their colossal business rates raid, Labour are squeezing businesses for every penny they can get. The last Conservative Government brought inflation under control after its peak following the Russian invasion of Ukraine and the Covid-19 pandemic. In contrast, Labour have sent inflation back up with their tax, spend and borrow doom loop. Inflation in the UK was the highest in the G7 last year, and is now rising again. Families are paying more in tax to fund the lifestyles of those on welfare, at the same time as facing a rising cost of living thanks to Labour's choices. And with John Healey reportedly planning an energy bill bailout for Benefits Street at the Budget, Labour are showing whose side they are on. The Conservatives, in contrast, want to relieve the pressure on hardworking families and get the welfare bill, and wider spending, under control. Otherwise inflation will remain persistently high and borrowing will continue to balloon as it has under Labour, leaving a colossal bill for the next generation to cover. Victoria Atkins MP, Shadow Secretary of State for the Environment, Food and Rural Affairs, said: Inflation is shrinking family budgets and making life harder. Labour must take action at the Budget to bring it under control, or people will see their supermarket shop becoming even more expensive, and the value of their savings fall. Labour's tax rises and red tape are driving up costs for businesses including our farming sector and retail firms. At the same time Ministers are handing out billions and billions more to people on welfare. The Conservatives are the only party with a plan to cut spending, cut the welfare bill and back businesses by cutting taxes, including the Family Farm and Family Business Taxes. We will also scrap business rates for thousands of pubs, shops and restaurants on our high streets, and bring down energy bills by £200 a year with our Cheap Power Plan. While Labour extract more and more cash to pay out in benefits, we will back the hardworking families and firms that form the basis of our economy, and get Britain working again. ENDS Notes to Editors: Higher inflation under Labour is hammering working people:
o The Food and Drink Federation (FDF) has warned that food inflation is set to reach 4 per cent by Christmas and peak at 6.4 per cent in July 2027.The FDF has also warned that food inflation is forecast to remain significantly above historical averages for the second half of 2027. Karen Betts, CEO of the FDF, said: The persistently higher costs of energy, logistics and packaging, compounded by this summer's extreme heat, mean that food prices will rise this year, and we believe that rise will be sustained into 2027' (FDF, Press Release, 9 September 2026, link). o The energy price cap has increased by £367 under Labour. The energy price cap for July to September 2024 was £1,568. That has increased to £1,935 for October to December 2026 on a like-for-like consumption basis, or £1,723 on Ofgem's current typical-use measure (Ofgem, Energy Price Cap, 27 May 2026, link; Ofgem, Press release, 26 August 2026, link). o The price of iesel has hit a record high, and petrol is at its highest since 2022. DESNZ statistics show that for 12 October 2026, the pump price of petrol was 175.28 pence per litre. This is the highest since August 2022, during the energy crisis triggered by Russia's invasion of Ukraine. For diesel, the pump price was 200.04 pence per litre. This is the highest ever recorded (DESNZ, Weekly road fuel prices, 20 October 2026, link). But those leading a life on benefits are protected:
o Personal Independence Payment o Disability Living Allowance o Attendance Allowance o Carer's Allowance (House of Commons Library, Benefits Uprating 2026/27, 1 December 2025, link).
o Employment and Support Allowance o Jobseeker's Allowance o Income Support (House of Commons Library, Benefits Uprating 2026/27, 1 December 2025, link).
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