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In her last address as TUC general secretary, Frances O'Grady will warn that the ongoing cost-of-living crisis is pushing UK workers "to breaking point".

O'Grady will deliver her final remarks to the TUC Congress on Tuesday, during which she will caution that the UK is on course for two decades of lost living standards for workers.

"Under the Conservatives, working people have got poorer, while shareholders have got richer," O'Grady, whose organisation represents 48 worker unions, is due to say.

"We're in the longest squeeze on real wages since Napoleonic times. The worst in modern history."

She warns that with inflation outpacing wage growth, workers will lose £4,000 in real earnings within the next three years.

Her remarks will also double-down on criticism of government proposals to allows agency workers fill in for workers on strike - something the TUC has pledged it will vigorously fight.

"Read my lips: we will see you in court," O'Grady will say.

The prime minister has received praise for "reaching out and coming to different groups" from a centrist Conservative MP.

On Monday evening, Liz Truss met with the 100-stong One Nation group of centrist Tory MPs where she was faced with tough and direct questions.

After the Westminster meeting, Richard Graham said the PM had "huge energy and determination and resilience which have got her to where she is".

The Tory MP praised her for taking questions and being straightforward about things that have gone wrong and what is going to happen next.

However, Mr Graham said he would not speculate about what could happen to the PM next.

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As a result of the tax changes made by Jeremy Hunt, a person on £20,000 will be £75 worse off on their take-home pay, according to numbers provided by the accountancy firm EY for BBC News.

A person on £40,000 will be £275 worse off and someone on a salary of £60,000 will be £377 worse off, its analysis suggests.

It follows the chancellor's statement confirming that a cut in the basic rate of income tax has been cancelled and increases in the duty rates for beer, cider, wine and spirits will now go ahead instead of being scrapped.

Chris Sanger, EY’s head of tax policy, said that Monday's announcements marked a "turn it off, and start again" approach - familiar to anybody whose computer has ever crashed.

"The chancellor may well be hoping that the country resets and forgets the mini-Budget of his predecessor," he said.

But he added: "In keeping the basic rate of income tax at 20%, rather than dropping by one pence from April 2023, the chancellor has reinforced the message that the cupboard is bare and needs to be restocked before further is available."

It's been another frenetic 24 hours for UK politics.

New Chancellor Jeremy Hunt announced U-turns on Liz Truss's economic plans, including the planned cut to income tax and two-year support for households' energy bills.

We've also heard from the prime minister, who told the BBC she's sorry for the mistakes she's made - but they are now solved.

In case you need a reminder, here's a summary of what exactly has been ditched and retained from Liz Truss and Kwasi Kwarteng's original mini-budget:

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Also on Newsnight, shadow finance secretary James Murray said that was tough to predict what Jeremy Hunt will do next as chancellor - let alone if he would last in his new post.

“Let’s see if Jeremy Hunt is still the chancellor by the end of the month," Murray told the programme.

He added that Hunt's scrapping of the previously proposed tax cuts was an "extraordinary" U-turn.

Pressed to outline Labour solutions to the current economic crisis, Murray said "it would be irresponsible" to draft a detailed plan while the future of the economy remains uncertain.

"Goodness knows where we're going to be at closer to election," he said.

After speaking to a senior figure within the Conservative party today, BBC Newsnight political editor Nicholas Watt says it is clear the Tories are deeply divided on the future of Liz Truss as prime minister.

Some, he told the programme, have praised her quick appointment of Jeremy Hunt as chancellor.

But as the day went on, "it did feel like the mood was moving against Truss in her party," Watt said, adding that discussions had erupted on how to replace her.

Watt's source said the party is now torn into three groups: those who are loyal to Truss, those who believe she must go but cannot agree on how, and those who want to replace her immediately.

The latter - those who want Truss gone - are said to make up about half of the party, putting her future as leader in serious jeopardy.

"It feels like the dam could burst this week," the senior Tory source told Watt.

If you’d like to hear the whole of BBC political editor Chris Mason’s interview with the prime minister, listen to a special edition on BBC Sounds.

To hear it, click here.

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There has been some speculation that Ben Wallace, who has been the defence secretary since 2019, could replace Liz Truss as prime minister should she resign.

Wallace has now quashed those rumours.

Speaking to The Times, Wallace said he will be holding on to his current job, external.

He added people want the government to show "stability and security", or else the Tories will be sent to opposition.

Wallace accused his Conservative colleagues of playing "political parlour games".

"I say to the colleagues who think our role is to feed the instability within the party, by proposing other people as leaders no matter who they are, [you] are doing a disservice," Wallace said.

Image source, Reuters

She's just vowed to lead the Conservatives into the next general election. But the decision may not be in her hands.

So what are the ways Tory MPs could force Liz Truss to step down?

Party pressure

Either the Cabinet - made up of senior members of the government - or a large group of Tory MPs could apply political pressure by telling the PM she has lost their confidence and needs to go.

Some Tory backbenchers, including Crispin Blunt and Jamie Wallis, have publicly called on Ms Truss to stand down.

A confidence vote

At least 15% of sitting Tory MPs have to write a letter saying they no longer have confidence in the party leader. This works out as 54 MPs.

Letters of no confidence are sent to Sir Graham Brady, chairman of the 1922 Committee - the organisation representing all backbench Conservative MPs.

However, under the 1922 committee's current rules a new leader cannot be challenged in their first year.

So unless the rules are changed, Truss could not be removed this way. If they were changed - and the threshold was reached - a vote of no confidence in the sitting leader would then be held.

A motion of no confidence

A motion of no confidence is a vote where all MPs - not just Conservatives - get to vote on whether they have confidence in the government to continue.

If Labour leader Sir Keir Starmer introduced this motion, convention means that the government would need to provide time for a debate and a vote in Parliament.

In order to pass, the motion needs just one more MP voting in favour than against.

• Read more: How could the prime minister be replaced?

Click here to view the full-length interview on BBC iPlayer.

More now from our interview with Liz Truss.

Truss defended the decision to ditch many of the measures laid out in the mini-budget, saying it would have been “completely irresponsible” for her “not to act in the national interest the way I have”.

“I knew that we had to act to protect economic stability, and that's why I appointed Jeremy Hunt,” she said.

On whether she can convince the public that she still has credibility as prime minister despite binning much of her economic policy agenda so early on in office, Truss admits the government went “too far and too fast” with its plans.

“But I am completely committed to delivering for this country, and that's why I'm in the job,” she said.

Asked if she feels humiliated over the series of U-turns the government has performed in recent days, she said she is spending her time thinking of “how we deal with the situation and how we deliver for the public”.

She added: “That's what motivates me and that's why I'm doing what I'm doing. I care deeply about this country. I care deeply about our success".

Read our full story here.

In the same interview, Liz Truss tells the BBC she will lead the Conservative Party into the next general election.

"The important thing is that I've been elected to this position to deliver for the country. We are facing very tough times. We simply cannot afford to spend our time talking about the Conservative Party, rather than what we need to deliver. That is my message to my colleagues."

What about the fear among many Conservative MPs that the party may lose in the next general election, and the fact that she is being blamed for that?

"Well my message to my colleagues is yes, I completely acknowledge that there have been mistakes. I have acted swiftly to fix those mistakes. I've been honest about what those mistakes were. And what we now need to do is move forward and deliver for the country because that's ultimately... what people care about," she says.

"I will stay in the job to deliver for the national interest," she concludes.

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In an interview with the BBC, PM Liz Truss has apologised for the mistakes she said were made under her premiership, adding she had fixed those mistakes.

"I do want to accept responsibility and say sorry, for the mistakes that have been made.

"I wanted to act but to help people with their energy bills to deal with the issue of high taxes, but we went too far and too fast. I've acknowledged that. I put in place a new chancellor with a new strategy to restore economic stability," she says.

"And now what I'm focused on is delivering for the public, whether that's delivering on our energy price guarantee - and we've made sure people are only paying a typical household £2,500 - but also delivering on the promise of growth, making sure we're delivering on the roads, the broadband, the mobile phone signal - all of those things which is going to help our economies succeed."

On the question of whether her vision for Britain is dead, she tells BBC political editor Chris Mason she has acted in the national interest and remains committed to her vision, but that it will have to be delivered "in a different way".

London shares rose on Monday as new Chancellor Jeremy Hunt reversed Prime Minister Liz Truss's economic plans announced just three weeks, which sparked investor concerns and market turmoil.

The FTSE 100 index, which ranks the biggest listed companies in the UK, ended 0.9% higher, while the broader FTSE 250 index closed 2.8% up.

It's been a tumultuous day in politics, with most of Liz Truss's original economic plans shelved by her newly appointed chancellor:

• This morning, Jeremy Hunt confirmed in a televised statement that many of the planned changes in Kwasi Kwarteng's budget wouldn't be going ahead
• The planned 1p cut in the basic rate of income tax is on hold indefinitely, with the rate remaining 20%, he said
• The Energy Price Guarantee will no longer last for two years - it will be reassessed in April, with the aim of making it more specifically targeted
• Plans to cancel the 1.25% increase in National Insurance contributions will still go ahead, along with a reduction in stamp duty
• In Parliament this afternoon, Labour asked an urgent question of Liz Truss on the "current economic crisis" - Leader of the Commons Penny Mordaunt stood in for the PM, who she said was "detained on urgent business"
• In response to heavy criticism from opposition MPs, Mordaunt said the PM was not hiding "under a desk" and there had not been a leadership "coup"
• Hunt later gave a statement and took questions from MPs on his plans, stressing the need for difficult decisions in order to establish economic stability
• He did not rule out a windfall tax on energy profits and refused to commit to state pensions rising in line with inflation - or to maintaining Truss's promise to increase defence spending to 3% of GDP
• Amid disquiet in her party, Truss met this evening with the One Nation group of centrist Tory MPs and later hosted a reception for cabinet members

Image source, Reuters

There were "tough" and "direct" questions for Prime Minister Liz Truss when she met the 100-strong One Nation group of centrist Conservative MPs, Tory MP Alec Shelbrooke has said.

The PM answered the questions "calmly" and "took them on board", according to Shelbrooke.

"I think she recognises that we haven't got communication right in many, many ways, and we need to improve on that," he added.

Tory MP Simon Hoare, who also spoke to the media after the One Nation meeting, says no-one present suggested Truss should stand down.

However, he said some of the "errors" from the Truss government had been "schoolboyish" and "unforced".

BBC political correspondent Iain Watson reports that several MPs present wanted a reshuffle, and one said they wanted to avoid an eight-week leadership contest but Truss "has a limited time".

He reports that one attendee gave a particularly scathing assessment, saying: "It is the first time I have heard a corpse deliver its own eulogy."

Kevin Peachey
Personal finance correspondent

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The government's Energy Price Guarantee was originally put in place for two years - to limit the price that suppliers could charge for each unit of energy.

Now that will only be in place for six months, just to cover this winter. The Treasury will review support given from April, but Mr Hunt said there would be "a new approach" targeting those in the most need.

You will still pay for the gas and electricity you use. For a typical household - one that uses 12,000 kWh (kilowatt hours) of gas a year, and 2,900 kWh of electricity a year - it means the annual bill will be £2,500 until next spring. Last winter it was £1,277 a year.

From spring, the details will be decided by the review, and it is likely that only those with lower incomes will be supported. There will also be incentives to be more energy efficient.

Predictions from consultants Cornwall Insight suggest that, for households that do not receive any support, a typical annual energy bill could be £4,347 in the spring, dropping to £3,722 next winter – however that prediction could be significantly affected by changing wholesale prices.

Image source, PA Media

Business Secretary Jacob Rees-Mogg has said Liz Truss is "a very good prime minister" and she should "absolutely not" resign.

The business secretary spoke to journalists as he arrived at Downing Street this evening ahead of a drinks reception the prime minister is holding to reassure her cabinet.

Guests seen entering No 10 also included Foreign Secretary James Cleverly, Leader of the House of Commons Penny Mordaunt and chief whip Wendy Morton, and Home Secretary Suella Braverman, among others.

Image source, PA Media

In a dramatic start to the week, new Chancellor Jeremy Hunt reversed almost all tax measures set out in the mini-budget outlined just a few weeks ago.

Prime Minister Liz Truss, meanwhile, was keeping a low profile.

We've just had this statement from No 10, saying Liz Truss was “determined to do what’s best for the country”.

The Downing Street press secretary also said “no PM has answered a UQ [urgent question] since 2012”.

There are no plans for a further reshuffle, he added.