Proposals to freeze some disÂability 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.
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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.
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“Increasingly, there is lots of clear evidence that work is good for mental health and physical health too… social security alone for many people will never be the key to a better life. It should be a springboard and not trapping people,” she told the newspaper.
Ms Kendall has revealed plans to give disabled people the right to try employment without the risk of losing their benefits.
The so-called “right to try guarantee” aims to prevent those people who receive health-related benefits from having their entitlements automatically re-assessed if they enter employment.
The Observer said the details are due to be announced as part of a green paper on Tuesday.
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Research published in February by the Department for Work and Pensions (DWP) showed the number of 16 to 34 year-olds who are long-term sick with a mental health condition has reached 270,000, increasing by 60,000 (26%) in the last year alone.
Some on benefits ‘taking the mickey’
The figure for all working-age people is 790,000, an increase of 140,000 (22%) over the last year.
Responding at the time to those figures, Ms Kendall said some people on benefits were “taking the mickey”.
“I have no doubt, as there always have been, there are people who shouldn’t be on those benefits who are taking the mickey and that is not good enough – we have to end that,” she told ITV News.
The same survey found 200,000 people receiving health-related or disability benefits were ready to work if the right job or support was available.
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Welfare cuts are supported by the Conservatives, albeit the party has accused Labour of “dithering, delay and division” on the issue.
Meanwhile, the SNP argues any planned cuts to disability payments should be “abandoned”, and disability charities have expressed a similar view.
Sky News’ Trevor Phillips will be looking at all the political headlines this week from 8.30am this morning. He will be joined by Health Secretary Wes Streeting, shadow education secretary Laura Trott and former national security adviser Lord Ricketts.
