The Prime Minister has defended the government’s decision to cut the £20 universal credit cut and said that companies should pay higher wages.
Boris Johnson argued that the taxpayer should not subside lower wages through benefits and set his vision is that the country should be a “high skill, high wage” economy.
Johnson said that cheap foreign labour has prevented companies from investing into their workforce and infrastructure.
Addressing the Tory Party conference in Manchester that the £20 universal credit will cease on Wednesday.
The Prime Minister told LBC Radio, “I understand that people feel times are difficult at the moment because we have got an economy that’s coming out of a very tough period with the Covid pandemic and it’s growing strongly now.
“We’ve got the fastest economic growth in the G7.”
However, on the Universal Credit cut Johnson said, “What we won’t do is take more money in tax to subsidise low pay through the welfare system.”
He added, “This government is doing the difficult, long-term things. We got Brexit done, which was a very difficult thing to do, and we are now going to address the big, underlying issues that face the UK: long-term lack of productivity, long-term lack of investment in energy and infrastructure.
“We are going to fix that.
“That will have a big downward pressure on costs and that is the way to tackle inflation.”