The government has left the door open to a U-turn on controversial plans to freeze some disability benefits, as Downing Street attempts to avoid a rebellion from Labour MPs.
It comes amid growing concern over plans for billions of pounds worth of welfare cuts expected to be announced by the government next week, amid warnings that thousands of disabled people could be forced into poverty.
Initial reports had suggested that Personal Independence Payments (PIP) would be frozen from rising in line with inflation for a year, but the plan has been met with strong opposition - and are now expected to be dropped.
Asked about PIP on the BBC on Sunday, health secretary Wes Streeting was unable to say whether the government would freeze the payment as part of its welfare reforms this week.
“I haven’t seen the full plans, they haven’t come to Cabinet yet”, he said.
“But what I do know is the work and pensions secretary wants to support people who need help the most and we’ve got to make sure that there is a wider range of support, and that everyone’s playing their part, including me.
“Because with those levels of illness, for example, if I can help people back to health, in many cases I’ll be helping them back to work and that’s what we’ll do.”
He added: “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.”
The government has insisted that there is a “moral case” for implementing the package of welfare cuts, which are designed to save between £5bn and £6bn - but it has drawn the ire of several Labour MPs and peers.
Despite this, Sir Keir Starmer is set to defy growing criticism by pushing through the changes, which could see more than 600,000 benefit claimants lose out on hundreds of pounds.
Concern from MPs arose after Downing Street could not guarantee that the most vulnerable disabled people would be unaffected by the changes. However, No 10 insisted it will “protect those who cannot work”.
A vote to freeze PIP would likely highlight divisions within the party despite Ms Reeves arguing on Friday that the government needed to “get a grip” on the welfare bill.
The government has held a number of meetings with Labour backbenchers in order to persuade them of the plans, which have sparked concern across the party, with even cabinet ministers understood to be divided on the issue.
Sources have since told the BBC the government is looking at backtracking on the PIP freeze in order to stave off the impending rebellion.
It comes after the government announced that disabled people will have the right to try employment without the risk of losing their benefits, in what is seen to be another major concession in its plan to slash the welfare bill.
Ms Kendall is expected to announce legislation to introduce a “right to try guarantee” that will prevent people receiving health-related benefits from having their entitlements automatically reassessed if they enter employment.
The welfare cuts will come ahead of chancellor Rachel Reeves’ spring statement on March 26, where she is expected to make a raft of public spending savings to make up for tightening fiscal headroom and balance the books.
Speaking to the Observer, Ms Kendall said: “I know as a constituency MP for 14 long years under the Tories that there will always be some people who cannot work because of the severity of their disability or health condition,” she said. “Protecting people in genuine need is a principle Labour will never compromise on.”
However, she added that the system badly needed to be reformed to ensure people didn’t spend a lifetime on benefits, adding: “It’s terrible for the country too, as spending on the costs of failure soar. The sickness and disability bill for working age people has increased by £20bn since the pandemic, with a further £18bn rise to £70bn projected over the next five years.
“We must fix this broken system for the people who depend on it and the country as a whole.”
Meanwhile, defending the plans, Mr Streeting warned that many people in the current welfare system are “stuck in a trap of jeopardy”, as they want to return to work but are scared they wouldn’t be able to get their benefits back if it doesn’t work out.
“If you're someone who is in the benefit system and there's a job opportunity available, and you think ‘I might be able to take the plunge and go for it’ - you're stuck in this trap of jeopardy”, he told Sky News.
“You think, if I take it and it doesn't work out, I go straight back to square one, not onto the benefits I was on before, but right back to applying for the benefits and going through what can be an ordeal.”
He added: “There are lots of things that we are going to do to support people back to work, to provide more security”.
A Department for Work and Pensions spokesperson said: “We have been clear that the current welfare system is broken and needs reform, so it is fairer on the taxpayer and helps long-term sick and disabled people who can work to find employment, whilst ensuring it provides support for those who need it most.”
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