Ministers have vowed to forge ahead with plans to reform disability benefits despite losing the court case on Thursday brought by disabled campaigners.
The Labour Government said it will maintain the savings but would do so differently, bringing forward their own changes.
Any delay to the reforms will cause a headache for Chancellor Rachel Reeves and Work and Pensions Secretary Liz Kendall after they committed to making billions of pounds in welfare savings in the current forecast of the public finances.
Campaigners are hopeful the ruling will prompt ministers to rethink the proposals.
Labour pledged to match the £3bn in savings the changes would achieve.
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Read MoreBut the DWP’s consultation over tightening up the criteria for the Work Capability Assessment (WCA) was ruled “unlawful” and “misleading” by the High Court on Thursday.
Government sources said Labour had always intended to bring forward new proposals for overhauling the WCA process, which ministers will do in consultation with disabled people.
Sources told The i Paper work on wider changes to disability benefits, such as personal independent payments (PIP), would continue with a long-promised Green Paper published in spring.
Responding to the verdict, the Government promised to consult again on WCA reforms, blaming “shortcomings” in the process launched by the previous Conservative government.
A Government spokesperson said: “The judge has found the previous government failed to adequately explain their proposals.
“The Government intends to deliver the full level of savings in the public finances forecasts.”
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Read MoreShe told The i Paper: “The Labour Government seems committed to the same policy [as the Tory government] – making up for failings in the economy by taking money away from disabled benefit claimants.
Ken Butler, policy adviser at Disability Rights UK, claimed the ruling could delay the publication of the Green Paper because any consultation would include reforms to PIP and take at least three months.
He added: “The ruling that cost savings were at least one if not the “central basis” that was the impetus to the proposed reforms should be a wake-up call for the current Government, who seem intent on bringing similar proposals forward in the spring.”
No 10 said earlier this week that “nothing is off the table” when it comes to further welfare cuts – sparking fears benefits cuts could be used by the Treasury to claw back even more public money.
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