Government to put end to benefits and inflation link

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The Government is considering replacing the current practice of increasing benefits in line with inflation, according to the BBC.

The move, if implemented, would instead see annual increases in many benefits brought into line with average pay. The plans, which would affect both jobseeker's allowance and housing benefit, were first mooted in September last year, when above average inflation figures of 5.2% forced Chancellor George Osborne to consider cost-cutting measures. It was opposed by a combination of work and pensions secretary Iain Duncan Smith and the Liberal Democrats. The new move is set to be especially unpopular with Liberal Democrat activists, who meet in Brighton this week for the party's annual...

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