Ministers to offer olive branch on welfare plans to avert Labour rebellion
Ministers are to offer mutinous Labour MPs an olive branch on the government's welfare plans to help avert a major rebellion in a crucial vote early next month.
Liz Kendall, the welfare secretary, wants to reassure angry MPs who have threatened to rebel over fears that sick and disabled people will be hardest hit.
The Guardian has been told she will put 'non-negotiable' protections for the most vulnerable benefits recipients on the face of the welfare reform bill when it is published next week, providing additional support to those with the most severe conditions who will never work.
But with Rachel Reeves, the chancellor, ruling out a U-turn on disability benefit cuts and government aides insisting there will be no substantial change to the bill, it is unclear whether the tweaks will be enough to prevent a rebellion that could even risk a defeat.
Labour MPs are demanding big changes to the proposals first put forward in March in the welfare green paper, including a rethink on eligibility for personal independence payments (Pip) for disabled people and benefits for carers.
Kendall's plans to save £5bn a year by overhauling the welfare system, including by cutting Pip, triggered alarm among Labour MPs, with experts warning that up to 1.2 million people with disabilities are expected to lose thousands of pounds a year.
With an extra 250,000 people falling into relative poverty by 2029-30, according to the government's own impact assessment, ministers are braced for their biggest rebellion yet, with as many as 170 MPs saying they could vote against the plans.
After a consultation on the biggest shake-up of Britain's welfare system since universal credit was introduced more than a decade ago, and discussions with multiple MPs, Kendall is now offering a series of modifications to help alleviate concerns.
Hundreds of thousands of people who will no longer qualify for Pip, which is intended to help with their quality of life and is not connected to employment, will continue to receive payments for 13 weeks, a more generous transition than the four-week period more usually adopted by government.
During this time they will receive support for health, care and employment needs. Carer's allowance will be protected throughout this period but will end when Pip is withdrawn.
The sickest benefit recipients with less than 12 months to live and those with lifelong, often progressive and incurable conditions will automatically get a higher rate of universal credit and will not have to go through reassessments, which take place on average every three years.
The new 'right to work' scheme for those on health and disability benefits, previously announced by Kendall, will be introduced at the same time as the bill so welfare recipients can try to return to work without risking losing their entitlements.
Kendall told the Guardian: 'When we set out our reforms we promised to protect those most in need, particularly those who can never work. I know from my 15 years as a constituency MP how important this is. It is something I take seriously and will never compromise on.
'That is why we are putting additional protections on the face of the bill to support the most vulnerable and help people affected by the changes. These protections will be written into law – a clear sign they are non-negotiable.'
While Reeves insisted she would not be rethinking her decision on disability benefit cuts on Thursday, despite speculation that the government could soften its stance, she said she was 'taking into account' representations from Labour MPs.
Pressed by the BBC on whether she would change her mind, Reeves said: 'No, we're not going to be changing that. It is important that we reform the way the welfare state works so that there is a welfare state there for people.
'We are the only developed country where the number of people in the labour market is lower than it was before Covid, the number of economically inactive people of working age is rising.'
But she added: 'We've already announced that we are reviewing the criteria for accessing Pip. Even with these changes, we will substantially be increasing the amount of money we are paying in sickness and disability benefits during the course of this parliament.'
Under the changes already announced, claimants would not qualify for Pip unless they score a minimum of four points on a single daily living activity. Government sources have ruled out any further changes to the assessment criteria.
Assessments score from 0 to 12 the difficulty that claimants face in a range of living activities such as preparing and eating food, communicating, washing and getting dressed.
Just over 370,000 people who claim Pip will lose the payments, while another 430,000 who would have become eligible in the future will not now get it. On average these people will lose £4,500 a year.
The government has argued the welfare system needs dramatic reform as 1,000 people a day are newly claiming benefits. Even with the cuts, it will still be spending more on Pip, with an extra 750,000 people receiving payments by the end of this parliament.
As part of the measures, the Department for Work and Pensions will spend up to £1bn a year extra on helping people back into jobs.
About 170 MPs, including some loyalists, are understood to be preparing to rebel by either voting against the government on changes to eligibility for Pip payments or abstaining.
One Labour MP suggested that making small changes to the plans would not be enough to win over sceptics. 'Small tweaks here and there won't be enough. As long as the welfare reforms punish the most vulnerable, they'll face opposition,' they said.
A government source suggested the numbers were starting to fall after Kemi Badenoch said the Tories would oppose the plans. 'The idea of voting against the government becomes more difficult for people if it means walking through the lobbies with the Tories,' they said.
Labour whips have suggested that the expansion of free school meals last week and indications from senior ministers that they were open to lifting the two-child benefit cap was also helping to reassure concerned MPs.
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