New work and pensions secretary cannot commit to ending benefits freeze next year

Therese Coffey faces questions over why money for struggling families has not been found on the PM's 'magic money tree'

The new work and pensions secretary has refused to commit to ending the benefits freeze next year despite pressure from MPs to end the controversial policy.

Thérèse Coffey said she could not give a "definitive outcome" on whether Boris Johnson's government would renew the freeze on benefits for working-age people in April 2020, as suggested by her predecessor Amber Rudd.

In her first appearance at the Work and Pensions Committee, Ms Coffey was grilled by MPs over the welfare freeze, which was introduced by George Osborne in 2016 as part of the government's austerity agenda.

Asked about ending the freeze, she said: "I'm in discussions with Treasury about this [120 benefit rates] but until I get the analysis which is due before the end of the month, then I won’t be in a position to say exactly what we’ll do on every single product line.”

Chairman Frank Field demanded to know why money had not been allocated to help struggling families from the prime minister's "magic money tree".

Ms Coffey replied: "I think there’s a general desire from the prime minister to see how we have that increased prosperity and how we then share the benefits of increased prosperity with everyone in society.

"I can’t give you a definitive outcome on what we will do."

She said the government was "looking carefully" about what it could do with benefits into 2020.

The exchange came during a fractious parliamentary hearing, where Ms Coffey gave a bullish defence of the government's record on welfare.

The cabinet minister claimed her Suffolk Coastal constituents would give universal credit as 9.9 marks out of 10 - despite concerns the controversial welfare reform was pushing people into poverty.

As secretary of state, she ranked the department on 8 or 9 out of 10, adding: "I'm content."

Ms Coffey also clashed with Labour MP Neil Coyle over whether there was a link between the cap on benefits for families with more than two children and child poverty.

She said the limit was "popular" and denied there was a "causal link".

The Bermondsey and Old Southwark MP hit back: "There is a causal link between the policy and destitution and poverty. Yes, absolutely, 100 per cent."

She disagreed, but Mr Coyle said: "You're not accepting reality."

Ms Coffey also ruled out extending split payments UC claimants by default - despite a pilot of the scheme in Scotland.

Campaigners raised fears that a single benefit payment to households could allow abusers to control family finances.

It comes after pensioners in the UK were due to receive a 4 per cent increase in the state pension in October, more than double the rate of inflation.

The triple-lock rule for state pensions means that the state payout is the highest of consumer price inflation, earnings growth, or 2.5 per cent.