The guarantee – which was likened by one MP to “try before you buy” – is aimed at addressing backbench discontent about a multibillion pound package of welfare cuts which the Government is preparing to unveil next week.
Official figures on Friday showing that the UK economy contracted in January have only added to the pressure on Reeves.
Universal credit is also set to be overhauled to provide a greater incentive to look for work.
The Financial Times reported that the Energy Secretary Ed Miliband and the Leader of the Commons Lucy Powell voiced concerns in a Cabinet meeting this week.
An MP who described themselves as a “pretty loyal backbencher” said: “It’s the PIP freeze that is the most concerning, really.”
One Labour MP said: “We are seeing some suggestion from conversations people are having with ministers and No 10 that there will be a compromise to guarantee help for people frightened of coming off their disability benefit in case they can’t get back on it.
Try before you buy
Several other Labour MPs confirmed that fear of losing eligibility for disability benefits is a major barrier stopping people from putting themselves forward to get back into work.
“So a key thing for me is how are we going to provide a security guarantee that they can take steps to get back into work but will keep that package if it doesn’t work out.”
Cabinet members Ed Miliband and Lucy Powell, left and centre, have reportedly expressed concern about benefits cuts, and Angela Rayner, right, about cuts to her departmentThis week, Labour MPs were brought into Downing Street for briefings from the No 10 policy unit aimed at convincing them of the case for welfare reform.
“Whatever specific reform that comes forward – there will always be some people who are upset by this or that – but I think there’s fairly widespread if not universal agreement among Labour MPs that this is a broken system which the government’s inherited and it needs to change,” the MP said.
Wider cuts
Deputy Prime Minister Angela Rayner, the Home Secretary Yvette Cooper, and the Justice Secretary Shabana Mahmood are all understood to have spoken out about cuts to their departments.
A government source said it was natural for ministers to be “standing up for their departments”.
Asked about the disquiet in the Cabinet and among Labour ranks about the welfare proposals, a No 10 spokesman said he “wouldn’t get into details of Cabinet discussions”.
“That’s not just bad for the economy, it’s bad for people too, and that’s why this Government will set out plans to overhaul the health and disability benefits system shortly, so it supports those who can work to do so, whilst protecting those who can’t, to put welfare spending on a more sustainable path so that we can unlock growth.”
The DWP were contacted for comment.
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