Sir Keir Starmer has seemingly been forced to delay his plan to cut benefits after being spooked by a potential Labour rebellion.
As many as 80 Labour MPs were preparing to defy the Prime Minister over his plan to overhaul Britain’s “spiralling” welfare system.
Work & Pensions Secretary Liz Kendall was expected to unveil her plans as soon as today.
However, the announcement looks to have been pushed back to next week after nothing was spotted in the Government’s schedule.
Keir Starmer spooked by Labour revolt as benefits cuts vote ‘delayed to next week’
PA
Poole MP Neil Duncan-Jordan warned against a rerun of “austerity” suggesting the Starmer should “tax the super-rich” instead.
Addressing Labour MPs behind closed doors last night, the Prime Minister said: “We’ve found ourselves in a worst of all worlds situation – with the wrong incentives – discouraging people from working, the taxpayer funding a spiralling bill, £70billion a year by 2030.”
He added: “That’s unsustainable, it’s indefensible and it is unfair, people feel that in their bones.
“It runs contrary to those deep British values that if you can work, you should. And if you want to work, the government should support you, not stop you.”
The Prime Minister, who stripped the whip from seven Labour MPs over their two-child benefit cap revolt last summer, is looking to free up funds to cover his £13.4billion surge in defence spending.
Despite Reform UK’s civil war erupting over the weekend, Labour MPs remain concerned about disaffected voters heading towards either the populist party or the Greens.
York Central MP Rachael Maskell openly addressed the fears held by potential Labour rebels, claiming that “taking a sledgehammer to benefits” is “not the right approach”.
The potential cuts to Department for Work & Pensions expenditure puts further pressure on Liz Kendall just months after the Government axed Winter Fuel Payments and refused to cover compensation payments for Waspi women.
The Treasury is expected to push ahead with significant cuts to the welfare budget ahead of the Spring Statement at the end of this month.
Cuts have been pencilled in to make up for tightening fiscal headroom and fund a drastic increase in defence spending.
Chancellor Rachel Reeves is expected to unveil a set of cost saving measures and push for greater efficiency throughout Whitehall.
A leading trade union chief has also joined up to 80 MPs in voicing opposition to the welfare cuts.
Fire Brigades Union general secretary Steve Wright urged Reeves against adopting Tory-style welfare cuts.
However, more than 30 Labour MPs signed a letter labelling the decision a “truly progressive endeavour”.
Justice Secretary Shabana Mahmood said there is a “moral case” for cutting the welfare bill.
She added: “We know that there are many people who are currently receiving state support for being out of work who want to be in work. We know that we have too many of our young people currently out of work, not in education, employment or training.
“There is a moral case here for making sure that people who can work are able to work and there’s a practical point here as well, because our current situation is unsustainable.”
Kendall has also already told her Cabinet colleagues that the current system is “holding back the economy” and “bad for people’s wellbeing and health”.
