The Labour Government's plans to freeze Personal Independence Payment (PIP) disability benefits are understood to scrapped following backlash from MPs.
Work and Pensions Secretary Liz Kendall had been under pressure to cut the benefits bill with the expected cancellation of an inflation-linked rise to PIP now appearing to have been abandoned.
PIP is a the primary disability benefit administered by the Department for Work and Pensions (DWP), currently offering claimants a standard weekly rate of £72.65 and enhanced weekly rate of £108.55 for the daily living component.
The mobility component provides support for Britons who have difficulty getting around with a standard weekly rate of £28.70 and £75.55/
The floated PIP payment freeze has been scrapped, according to reports
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Amid sweeping changes to Government bureaucracy, including the abolition of NHS England, reform to the DWP is looming but Kendall appears to be rolling back on some floated cuts.
Instead, Sky News reports t hat the desired savings could be achieved by changing the eligibility criteria for the disability benefit.
Furthermore, cuts to the top rate of incapacity benefit are also being considered to Kendall in an attempt to cut costs for the Government.
The move comes despite Chancellor Rachel Reeves insisting "we do need to get a grip" on the welfare budge, having previously stated the "current system is not working for anyone".
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Reforms to the welfare system are expected to be announced this coming week ahead of the Chancellor's Spring Budget on March 26.
Almost four million working-age adults in England and Wales currently claim incapacity or disability benefits, according to the latest figures.
This represents a significant increase from 2.8 million before the Covid pandemic with the number of people on PIP is set to more than double this decade, Liz Kendall claims
This growth is partly driven by younger people claiming benefits. Research published in February by the DWP showed the number of 16 to 34 year-olds who are long-term sick with a mental health condition has reached 270,000.
This represents an increase of 60,000 (26 per cent) in the last year alone. The figure for all working-age people is 790,000, up by 140,000 (22 per cent) over the last year.
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 emphasised that work is beneficial for health, stating: "Increasingly, there is lots of clear evidence that work is good for mental health and physical health too."
As part of the overhaul to the DWP, the Work and Pensions Secretary has revealed plans for a "right to try guarantee" for disabled people.
Labour is looking to make significant cuts to the welfare state PAThis would allow those receiving health-related benefits to try employment without risking automatic reassessment of their entitlements.
Kendall has previously accused some individuals claiming benefit support from the Government were "taking the mickey".
Disability charity Scope has warned that cutting disability benefits would have "disastrous consequences" for disabled people.
David Southgate, policy manager at the charity, said: "Life costs a lot more when you're disabled, on average by over £1,000 every month."
He described benefits like PIP as "a lifeline" that helps pay for vital equipment, support at home, and sufficient heating.
"We're hearing constantly from people who already can't afford these, so taking further support away would be devastating," Southgate added.
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Rachel Reeves has urged the Government to "get a grip" over cuts to benefit payments
GB NEWSWhile acknowledging the system needs reform, he urged the Government to "work with disabled people to fix our broken benefits system."
The welfare cuts are supported by the Conservatives, although 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". The details of the welfare reforms are due to be announced as part of a green paper on Tuesday.
Some Labour MPs have expressed fears about drastic cuts to support for the most vulnerable. Kendall may have attempted to partly address concerns from cabinet colleagues and Labour backbenchers about the scale of the reforms.
