Disability cuts ‘dead in water’, say Tory rebels

Government attempts to slash £1.3 billion a year from disability benefits are “dead in the water”, rebel Tories said today after a Cabinet minister hinted at a U-turn.

Education Secretary Nicky Morgan downgraded the cuts to merely “a suggestion” during an appearance on BBC1’s Question Time programme in which she was barracked by audience members.

Although the savings from the cuts have been built into official Budget projections of public finances, Ms Morgan stressed no final decisions had been taken. “This is a measure that is still being discussed in government,” she said.

“It is something that has been put forward, there has been a review, there has been a suggestion, we are not ready to bring the legislation forward.”

Conservative backbencher Andrew Percy, who has organised a letter to Mr Osborne calling for a rethink, this morning praised her remarks as “sensible” and told the Standard: “There’s no way this can go ahead. It’s dead in the water.”

Mr Percy said the number of rebels was growing and he now had “significantly more” than 20 names on the letter, enough to overturn the Government’s majority. He said he also knew of other backbenchers who have contacted party whips separately.

He added: “What she said was very sensible. I think it is a reassuring change of tone from the top of government. It sounds hopeful.”

He called for an extra 2p on fuel to plug the hole that would be left in finances by a U-turn. “Given that prices at the pump have fallen over 30p I think people would pay 2p to protect vulnerable and disabled people,” he said.

A Cabinet rift over the disability cuts emerged today when a source close to Work and Pensions Secretary Iain Duncan Smith said Ms Morgan did not “seem to understand” the proposals.

The source told the BBC her comments on Newsnight did not “tally with what we and Downing Street are saying”.