Rachel Reeves was on collision course with Labour welfare rebels last night after they rejected an ‘olive branch’ designed to head off a Commons mutiny over benefit cuts.
The Chancellor is facing a ferocious backlash from her own MPs over plans to trim £5 billion from the benefits bill. More than 100 Labour MPs have warned party whips they could vote against the plan to restrict eligibility to disability benefits.
Ministers are trying to contain the rebellion by suggesting possible concessions. Under one proposal, those affected would continue to receive their benefits for a further 13 weeks to give them more time to find a job.
The compromise is set to be included when the legislation needed to push through the cuts is published next week.
But leading rebels dismissed the idea.
