Proposals to freeze some disability benefits are reportedly being scrapped after concerns from Labour politicians about the scale of planned welfare cuts.
The work and pensions secretary had been under pressure to cut the benefits bill and was expected to cancel an inflation-linked rise to the personal independence payment (PIP).
But it is reported those plans will be ditched by Liz Kendall, despite the Chancellor Rachel Reeves insisting “we do need to get a grip” on the welfare budget, saying the “current system is not working for anyone”.
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Reforms to the welfare system are expected to be announced this week, ahead of the spring statement on 26 March.
Explainer: Where could welfare cuts be made?
Some MPs fear drastic cuts to support for the most vulnerable, but Ms Kendall may have attempted to partly address concerns from cabinet colleagues and Labour backbenchers about the scale of the reforms.
Almost four million working-age adults in England and Wales currently claim incapacity or disability benefits, up from 2.8 million before the pandemic.
It is being widely reported that instead of scrapping a rise in PIP, savings could be achieved by changing the eligibility criteria along with cutting the top rate of incapacity benefit.
Ms Kendall told The Sunday Times it was an “absolute principle” to protect welfare payments for people unable to work. “For those who absolutely cannot work, this is not about that,” she said.
She said the number of people on PIP is set to more than double this decade, partly driven by younger people.
