Tory rebellion on welfare cuts

Backbenchers threaten to block Chancellor’s plans to limit benefits for 640,000 disabled people

GEORGE OSBORNE was last night facing a Tory rebellion that could block his plans to cut benefits for hundreds of thousands of disabled people.

Scores of Conservative MPs warned the Chancellor that they will force him to roll back on controversial govern- ment plans to cut the welfare claims of 640,000 disabled people to save £1.3 billion. One prominent backbencher warned that Mr Osborne had “zero chance” of getting the measure through Parliament.

The rebellion is a blow to Mr Osborne’s authority and came as MPs also vowed to oppose the Government next week over European Union taxes on tampons, solar panels and home insulation.

Economic experts also warned that Mr Osborne’s sugar tax on soft drinks might actually increase sugar consumption in the UK because people might start eating more sweet products such as chocolate. Amid signs yesterday that the Chancellor’s Budget was beginning to unravel, the Institute for Fiscal Studies warned that voters should “all be worried” about the risk of job cuts and lower wages amid growing concerns of another economic downturn.

The economic think-tank warned that Mr Osborne “won’t be able to sleep at night” because of the likelihood of him not now meeting his pledge to balance the nation’s books by 2020.

The row over the Personal Independence Payment (PIP) has echoes of the rebellion over tax credit cuts, which last year forced Mr Osborne into a Uturn.

Amid mounting anger over the policy, Mr Osborne yesterday said he would “listen to proposals”, indicating a possible climbdown.

Mr Osborne is already forecast to breach his self-imposed welfare cap every year until 2020. If he is forced to reverse some of the PIP changes he would be left even further from his targets. Ministers last night stood by the policy and insisted that the disability welfare budget needs to fall.

Under the plans announced in the Budget people will be less likely to receive disability benefits if they use aids such as a handrail or a walking stick to get dressed or use the lavatory. The IFS said that under the plans, 370,000 disabled people will lose an average of £3,500 a year. Andrew Percy, the MP for Brigg and Goole who is leading the rebellion, said: “It is simply not sellable, and it is not fair to the people affected. It is not fair to people who cannot work.

“There are scores of Tory MPs who are deeply concerned about this – certainly far more than the Government’s majority. It would be fair to say there is open rebellion and I would say there is zero chance of getting it through.”

David Burrowes, who led the successful rebellion against the relaxation of Sunday trading laws, said: “The Government needs to rethink its plan to cut

disabled benefits. Conservatives have a good record in supporting the disabled which is at risk if we press ahead with this unfair cut to PIP.”

Many MPs are concerned that the Government has failed properly to explain the cuts, leaving them unable to provide their constituents with information about the changes.

Senior Government sources last night expressed concerns that Mr Osborne is facing a repeat of the 2012 “omnishambles” Budget, which saw him forced into a U-turn over taxes on pasties, caravans and cathedrals.

It was seen as a turning point in the last Parliament, which saw Labour taking a lead in the polls.

Last night, Government sources played down the row and said Iain Duncan Smith, the Work and Pensions Secretary, is “willing to listen” and will consider “tweaks” to the proposals.

Mr Duncan Smith yesterday wrote to Conservative MPs, attempting to explain why the Government is changing disability benefits.

He pointed out that PIP spending is still due to rise in every year of this Parliament in real-terms.

Mr Duncan Smith added: “This year we are spending around £50 billion on support for sick and disabled people, more than the entire £34 billion defence budget this year.”

It has emerged that three senior Tory MPs, including Zac Goldsmith, the Tory candidate for Mayor of London, have in recent weeks been asked to step down as the patrons of prominent disabled charities after voting for the Government’s cuts to Employment Support Allowance.