Ministers Set to Dilute Welfare Cuts Amid Labour Rebellion

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In a significant shift, Work and Pensions Secretary Liz Kendall is expected to backtrack on plans to scrap an inflation-linked uplift to the Personal Independence Payment (PIP) following mounting pressure from within the Labour Party. The move comes as the government faces a deepening rift over its proposed welfare reforms, with critics arguing that the cuts could harm some of the most vulnerable in society.

The proposed reforms, which aim to address Britain’s ballooning benefits bill, have sparked heated debates within the Cabinet. Despite the backlash, the government is still expected to announce billions in spending cuts to the welfare budget this week. However, Downing Street has refused to rule out scaling back certain elements of the plan, with a government source stating, “We are not getting into speculation about any announcements.”

Stephen Timms, the Minister for Disability and Social Security, defended the need for reform, arguing that maintaining the status quo is neither “moral nor compassionate.” In a statement to The Telegraph, Timms said, “We inherited a broken welfare system that is failing the people it’s meant to help and failing the taxpayer. Simply doing nothing isn’t the moral or compassionate thing to do.”

He emphasized the government’s duty to create a sustainable system that supports the most vulnerable while encouraging employment and economic growth. “We have a duty to put it on a more sustainable footing, so it supports the most vulnerable now and for years to come, while also delivering a system that genuinely supports people into work, boosts living standards, and grows the economy as part of the plan for change,” Timms added.

As part of the reforms, Liz Kendall is set to introduce a “right to try guarantee,” which will protect claimants of health and disability benefits who wish to explore paid work. Under this measure, attempting paid employment will not trigger an automatic reassessment of a claimant’s benefit entitlement. The move is designed to address concerns raised in Department for Work and Pensions (DWP) surveys, which found that over half of benefits claimants feared losing their benefits if they tried paid work unsuccessfully.

Kendall will present the “right to try guarantee” as a way to overcome “real and perceived” barriers to reentering the workforce, which have “trapped” many in the benefits system. Additionally, top-ups are expected to be made available for the most disabled claimants to ensure they are not left financially worse off by the reforms.

The proposed changes highlight the delicate balance the government must strike between reducing the benefits bill and protecting vulnerable individuals. As the debate continues, all eyes will be on how ministers navigate the growing opposition within their own ranks.

For more political updates, visit London Pulse News.

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