Welfare claimants will have the right to try working without the risk of losing their benefits as part of Labour’s overhaul of the system.
Work and Pensions Secretary Liz Kendall is expected to announce legislation to introduce a ‘right to try guarantee’ for those on health-related benefits.
This will prevent people from having their entitlements automatically re-assessed if they enter employment.
A Department for Work and Pensions (DWP) survey found 200,000 people on health-related or disability benefits were ready to work if the right job or support was available.
But it is said that many disabled people, or those with long-term health conditions, fear they will not get their benefits back if they try employment but it does not work out.
Almost four million working-age adults in England and Wales currently claim incapacity or disability benefits, up from 2.8 million before the Covid pandemic.
Since becoming Prime Minister, Sir Keir Starmer has attacked Britain’s ‘broken’ and ‘indefensible’ welfare system and claimed it ‘locks millions out of work’.
His Government is expected to unveil around £5billion to £6billion of welfare cuts in the coming days, although it has emerged that ministers could U-turn on some plans.
Since becoming Prime Minister, Sir Keir Starmer has attacked Britain’s ‘broken’ and ‘indefensible’ welfare system and claimed it ‘locks millions out of work’
It has been reported that Downing Street and Ms Kendall’s department are poised to backtrack on imposing a real-terms cut to the personal independence payment (PIP) for disabled people – including those who cannot work – by cancelling an inflation-linked rise due to come into force next spring.
Sir Keir has been stung by a backbench revolt against his welfare crackdown, while some Cabinet ministers are said to have expressed disquiet.
Health Secretary Wes Streeting this morning refused to say whether the Government would freeze PIP as part of its welfare reforms.
He told the BBC’s Sunday With Laura Kuenssberg programme: ‘I haven’t seen the full plans, they haven’t come to Cabinet yet.
‘But what I do know is the Work and Pensions Secretary wants to support people who need help the most and we’ve got to make sure that there is a wider range of support.
‘And that everyone’s playing their part, including me, because with those levels of illness, for example, if I can help people back to health, in many cases I’ll be helping them back to work and that’s what we’ll do.’
He added: ‘I haven’t seen the proposals but you’ve seen the briefing, you’ve seen the speculation, I think the moral of the story is wait for the plans.’
A Government source said: ‘The broken welfare system we inherited is trapping thousands of people in a life on benefits with no means of support, or any hope for a future of life in work.
‘It doesn’t account for the reality of people’s health conditions, many of whom fear that they will be punished for taking a chance on work.
‘As part of our plan for change, our reforms will deliver fairness and opportunity for disabled people, and those with long-term health conditions, protecting the welfare system so it is sustainable for the future and will always be there for those who need it.’
James Taylor, executive director at disability charity Scope, said giving disabled people ‘greater confidence to try work’ was ‘a good move’, but warned against making significant cuts to benefits.
He said: ‘We hope that releasing news of this scheme at this time isn’t a smokescreen designed to blur the lines between in and out of work benefits.
‘PIP exists because life costs more if you are disabled. It isn’t an out of work benefit.
‘Making it harder to get benefits will just push even more disabled people into poverty, not into jobs.’
Asked about Labour’s welfare plans during a press conference on Saturday, Sir Keir said: ‘I have made the principles clear enough. We need to support those who need support, and to protect them.
‘But at the same time we need to make sure that we support and protect those who need to and are able to get into work, which the current arrangements I don’t think adequately do.
‘That’s why it’s important we make the case for reforming welfare, which is what we are doing.’
A Conservative Party spokesperson said: ‘Labour is failing to take the action needed to tackle the unsustainable welfare bill.
‘Their inaction has already cost the taxpayer £2.5billion and counting.
‘The Conservatives are united in the belief that those who can work should, which is why we had a bold plan at the election to save £12billion from the welfare bill.
‘Labour have done no original thinking of their own. The dithering, delay and division over the need to bring spending on benefits down is not fair for British taxpayers.’
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