Labour backtracks on benefits freeze: Now plans to tackle Britain’s spiralling welfare bill are set to be watered down over fears of major backbench rebellion_Nhy
Labour is expected to water down plans to cut benefits for disabled people over fears of a backbench rebellion.
Work and Pensions Secretary Liz Kendall had been planning to freeze personal independence payments (PIP) to tackle Britain’s spiralling welfare bill.
But the proposals are said to have been ditched in the face of a major backlash within the party.
Yesterday Health Secretary Wes Streeting refused to comment on the plans, further hinting that they will be abandoned this week.
Ms Kendall will address Cabinet tomorrow morning before making a statement to the Commons outlining her proposed reforms to benefits.
Reports of changes to PIP caused anger among Labour MPs who pointed out former Tory chancellor George Osborne avoided doing the same during a period of austerity. Several prominent Cabinet ministers – including Deputy Prime Minister Angela Rayner – are said to have voiced concerns about proposed spending cuts, including in welfare.
And groups of Labour MPs were called into No 10 last week to discuss the plans over fears of a rebellion if a vote is held on changing the payments.
Any plan to freeze PIP or change eligibility rules would require primary legislation which could trigger a revolt.
Work and Pensions Secretary Liz Kendall had been planning to freeze personal independence payments (PIP) to tackle Britain’s spiralling welfare bill
Health Secretary Wes Streeting refused to comment on the plans, further hinting that they will be abandoned this week
Reports of changes to PIP caused anger among Labour MPs who pointed out former Tory chancellor George Osborne avoided doing the same during a period of austerity (stock image)
Ministers are under pressure to save billions from Britain’s ballooning welfare budget ahead of the Spring Statement on March 26.
Sir Keir Starmer has described the costs as ‘unsustainable’ as they have risen by £20billion since the pandemic – and are due to hit £100billion by the end of the decade.
Ministers argue the plan to reduce the benefits bill by £6billion by that date will help people back into work.
The plans would have seen PIP – the main benefit for working age adults – frozen rather than increased in line with inflation, which means a real-terms cut for 3.6million claimants.
Labour appeared to be changing course on the plan yesterday, with Ms Kendall telling The Sunday Times that it was an ‘absolute principle’ for the Government to protect those who couldn’t work.
‘For those who absolutely can’t work, this is not about that,’ she said. ‘Almost 20 per cent of people on PIP are working. We know that many more disabled people would like to work if they could get the adjustments at work – the flexibility, the support that they need.
‘But for those who cannot work… those people will be protected.’
She also argued that there was a ‘Labour case’ for cutting the cost of disability benefits and encouraging people back to work.
Sir Keir Starmer has described the costs as ‘unsustainable’ as they have risen by £20billion since the pandemic – and are due to hit £100billion by the end of the decade
Mr Streeting told the BBC’s Sunday with Laura Kuenssberg programme: ‘I haven’t seen the proposals but you’ve seen the briefing, you’ve seen the speculation. I think the moral of the story is wait for the plans’
Asked about this yesterday, Mr Streeting said he had not seen the full proposals, but was sure Ms Kendall ‘wants to support people who need help the most’.
He told the BBC’s Sunday with Laura Kuenssberg programme: ‘I haven’t seen the proposals but you’ve seen the briefing, you’ve seen the speculation. I think the moral of the story is wait for the plans.’
Campaigners have urged the Government not to cut PIP, saying it would only serve to push disabled people into poverty.
Ms Kendall is still expected to cut the top rate of incapacity benefit due to concerns that those who cannot work are paid twice as much as jobseekers. She is also thought likely to announce a ‘right to try guarantee’ that will allow the disabled and sick to return to work without risking losing their benefits if it does not work out.
The shadow work and pensions spokesman Helen Whately said Labour was ‘divided’ over welfare and ‘cannot deliver the decisive change we need’.
She added: ‘The Government’s dithering and delay is costing taxpayers millions every day and failing the people who rely on the welfare system.’
