Half of Cabinet raise alarm over cut to benefits as Treasury stands firm

Half of Cabinet raise alarm over cut to benefits as Treasury stands firm

Three key ministers have voiced concerns about Rachel Reeves’s plan to slash the welfare bill.

Deputy Prime Minister Angela Rayner, Home Secretary Yvette Cooper and Justice Secretary Shabana Mahmood spoke out in Cabinet as half of those present urged the Chancellor to think again.

The strength of feeling was such that the Prime Minister allowed the meeting to run on for all to have their say, according to reports.

Work and Pensions Secretary Liz Kendall is expected to make a Commons statement setting out the details of the plan on Tuesday. 

The announcement was delayed after a major backlash to leaked reports that the Government wanted to cut more than £6billion from the welfare bill.

Ms Reeves has insisted the Government must get a grip on spiralling welfare costs as the ‘broken’ system is ‘not working for anyone’. 

Reducing the bill by getting claimants back to work is seen as a key part of the Government’s plans to grow the economy.

The bulk of the savings is expected come from making it more difficult to qualify for personal independent payments (PIP), given to those with disabilities to help fund the additional cost of living. 

Angela Rayner was among those who urged the Chancellor to think again

Yvette Cooper also voiced concerns about the Chancellor's plan to slash the welfare bill

Yvette Cooper also voiced concerns about the Chancellor’s plan to slash the welfare bill

And Shabana Mahmood was another key minister who expressed disapproval

And Shabana Mahmood was another key minister who expressed disapproval

They have more than doubled over the past five years to an annual £21.7billion, and are projected to almost double again in the next six years.

But the Government fears possible ministerial resignations and a major backbench rebellion if plans to restrict PIP go to a vote.

A No 10 spokesman warned that the benefits system will ‘swallow more taxpayers’s money and leave more people trapped in a life of unemployment and inactivity’ if left in its current state.

‘Number 10 are very worried,’ one Labour MP told the Financial Times. ‘There’s a sense that they may row back. 

‘They didn’t get the strength of feeling but they do now. People are worried they might lose their seats.’

Angela RaynerYvette Cooper

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