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Cameron defends Osborne and praises IDS Stephen Crabb: 'No further plans' for welfare cuts
(35 minutes later)
David Cameron has hit back at Labour calls for Chancellor George Osborne to resign as he sought to heal a rift in his party over Budget spending cuts. Ministers said they have no further plans to cut welfare as they sought to heal a rift over last week's Budget.
He praised Mr Osborne for "turning the economy around" and stressed his government was committed to "compassionate Conservatism". Welfare Secretary Stephen Crabb made the pledge in his first speech since replacing Iain Duncan Smith, who resigned with an attack on planned disability benefit cuts.
He also praised Iain Duncan Smith's record - after the minister quit in protest at "unfair" disability cuts. And the PM defended Chancellor George Osborne, whose Budget is missing £4.4bn earmarked for the now-scrapped cuts.
Labour said Mr Osborne's Budget was in "chaos" and should be withdrawn. Labour said Mr Osborne should resign and the Budget should be withdrawn.
Mr Cameron added his comments onto the end of a statement about the European Council following a weekend of turmoil and Conservative infighting triggered by Mr Duncan Smith's resignation. Both David Cameron and Mr Crabb praised Mr Duncan Smith, who said the government risked dividing society with politically-motivated spending cuts.
He told MPs Mr Duncan Smith "contributed an enormous amount to the work of this government and he can be proud of what he achieved". The new work and pensions secretary confirmed the changes to Personal Independence Payments had been cancelled and told MPs: "After discussing this issue over the weekend with the prime minister and the chancellor we have no further plans to make welfare savings beyond the very substantial savings legislated for by Parliament two weeks ago."
But the PM also made clear his support for embattled George Osborne, who must now find more than £4bn after planned cuts to Personal Independence Payments (PIP) were scrapped. He also said the government welfare cap, branded "arbitrary" by Mr Duncan Smith, had "strengthened accountability" and its level would be reviewed in the Autumn Statement later this year.
The Conservative leadership has been under fire - including from some of its own backbenchers - over the cuts to disability payments, which came at the same time as tax cuts for higher earners.The Conservative leadership has been under fire - including from some of its own backbenchers - over the cuts to disability payments, which came at the same time as tax cuts for higher earners.
Iain Duncan Smith said this flew in the face of Mr Cameron and Mr Osborne's oft-repeated claim that "we are all in this together".Iain Duncan Smith said this flew in the face of Mr Cameron and Mr Osborne's oft-repeated claim that "we are all in this together".
But Mr Cameron stressed to MPs that the Conservatives remained "modern, compassionate, one nation" party under his leadership. Mr Cameron addressed Mr Duncan Smith's attack during a statement about the European Council.
He stressed to MPs that the Conservatives remained "modern, compassionate, one nation" party under his leadership.
He listed policies aimed at low-earners including the National Living Wage and rebuilding "sink estates", adding: "None of this would be possible if it wasn't for the actions of this government and the work of the chancellor in turning our economy around."He listed policies aimed at low-earners including the National Living Wage and rebuilding "sink estates", adding: "None of this would be possible if it wasn't for the actions of this government and the work of the chancellor in turning our economy around."
The changes to Personal Independence Payments which prompted his resignation have now been shelved, and ministers plan to say how the planned £4bn savings will be found at the Autumn Statement later in the year.The changes to Personal Independence Payments which prompted his resignation have now been shelved, and ministers plan to say how the planned £4bn savings will be found at the Autumn Statement later in the year.
Responding to Mr Cameron's statement, Labour leader Jeremy Corbyn criticised Mr Osborne's absence from the Commons chamber and said the U-turn on disability benefits had created an "enormous hole" in the Budget, adding that the package had "inequality at its core".Responding to Mr Cameron's statement, Labour leader Jeremy Corbyn criticised Mr Osborne's absence from the Commons chamber and said the U-turn on disability benefits had created an "enormous hole" in the Budget, adding that the package had "inequality at its core".
He did not mention Mr Duncan Smith's resignation or his parting shot at the government.He did not mention Mr Duncan Smith's resignation or his parting shot at the government.
When Labour MP Liz Kendall did put Mr Duncan Smith's criticism to the PM, Mr Cameron said he was sad at his colleague's resignation, adding: "But I can guarantee that work of being a compassionate Conservative government will continue."When Labour MP Liz Kendall did put Mr Duncan Smith's criticism to the PM, Mr Cameron said he was sad at his colleague's resignation, adding: "But I can guarantee that work of being a compassionate Conservative government will continue."
The changes to the Budget were the subject of an urgent question from Labour before Mr Cameron's statement.The changes to the Budget were the subject of an urgent question from Labour before Mr Cameron's statement.
Shadow chancellor John McDonnell called on Mr Osborne to resign following Mr Duncan Smith's resignation and the furore over the PIP cuts, but Downing Street says the chancellor has the full confidence of the prime minister.Shadow chancellor John McDonnell called on Mr Osborne to resign following Mr Duncan Smith's resignation and the furore over the PIP cuts, but Downing Street says the chancellor has the full confidence of the prime minister.
Mr McDonnell said Mr Osborne's absence from the Commons chamber "insults this House" and that Treasury Minister David Gauke had been left to "defend the indefensible".Mr McDonnell said Mr Osborne's absence from the Commons chamber "insults this House" and that Treasury Minister David Gauke had been left to "defend the indefensible".
He added: "This is no way to deliver a Budget and no way to manage an economy."He added: "This is no way to deliver a Budget and no way to manage an economy."
Mr Gauke said the chancellor would be in the chamber for Tuesday's Budget debate, and said Labour was not in a position comment on "black holes" in budgets.Mr Gauke said the chancellor would be in the chamber for Tuesday's Budget debate, and said Labour was not in a position comment on "black holes" in budgets.
He said spending on Personal Independence Payments was up by £3bn since 2010, adding that the Budget "closes the gap between rich and poor and North and South".He said spending on Personal Independence Payments was up by £3bn since 2010, adding that the Budget "closes the gap between rich and poor and North and South".
As well as the welfare changes, Downing Street says ministers will not seek to oppose amendments to scrap the so-called "tampon tax" and an increase in VAT on solar panels.As well as the welfare changes, Downing Street says ministers will not seek to oppose amendments to scrap the so-called "tampon tax" and an increase in VAT on solar panels.