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The National (Scotland)
The National (Scotland)
National
Lucy Jackson

Benefits cuts could be watered down amid anger from Labour MPs

THE UK Government could water down cuts to disability benefits amid anger from Labour MPs.

Chancellor Rachel Reeves and Prime Minister Keir Starmer are facing increasing pressure from their own MPs over planned welfare cuts, the i paper reports.

The plans will see £6 billion in cuts to the welfare budget£5bn of which will come making it harder to qualify for the disability benefit Personal Independence Payment (PIP), which is awarded to help with the additional costs of disabilities.

The Labour Government is also set to freeze PIP payments next year so that they do not rise with inflation.

There will also be changes to the way Universal Credit is calculated. The basic rate paid to those searching for work will be raised, while the rate for those who are judged as unfit for work will be cut.

The Government is understood to want to avoid a repeat of the internal anger which followed the cut to the Winter Fuel Payment last year.

The Prime Minister's team spent Wednesday in discussions with angry MPs. Potential rebels were brought into Downing Street in batches to speak to Starmer's political director Claire Reynolds.

One MP who was invited to the discussions told the i that they felt the UK Government was "panicking" and could be forced into making "small" changes to the policy.

Another said: “They can’t just introduce cuts to PIP and not expect a backlash. They’re going to have to back down”

MPs said the meeting considered lots of data explaining the status of the extent of the challenge with the rising welfare bill, but with “no discussion or acknowledgment of any of the proposals” which have been reported.

A senior source said that no details will be made available to backbenchers before the Cabinet is made aware of the Government's final plans.

Reeves is set to announce cuts to the welfare budget during her Spring Statement on March 26, as she looks to plug an estimated £11.5bn hole in finances.

Work and Pensions Secretary Liz Kendall had been due to set out plans for welfare cuts this week before insiders were reportedly taken aback by the strength of feeling on the Labour benches.

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