Labour changes Welfare Bill tactics

Harriet Harman had said Labour would back changes to child tax credit

Labour has changed its approach to the government's Welfare Bill after an internal party row.

The party leadership will table an amendment setting out measures Labour backs and those it would change.

If the amendment is rejected, Labour MPs will be expected to abstain.

The move follows a party split over the scale of its support for the government's welfare reform proposals after interim leader Harriet Harman warned against "blanket opposition".

Three of the four leadership contenders had called for a different approach to allow some elements of the Bill to be opposed.

Tax credits

Now the leadership has acted to try to quell the revolt from MPs unhappy at the party's backing for changes including limiting child tax credit to two children.

Labour's amendment to the bill, which enacts measures set out in George Osborne's Budget, offers backing for the household welfare cap, and moving mortgage support from grants to loans.

But it opposes the abolition of child poverty targets and changes to Employment and Support Allowance.

It makes no mention of the child tax credit change.

The move comes after former shadow welfare minister Helen Goodman, backed by over 40 MPs, tabled her own amendment to the bill, raising the prospect of the party being divided in the Commons vote.

A party spokesman said the approach would leave the party's next leader free to decide how to handle the later stages of the bill's passage through Parliament.

He added: "As Harriet said at the weekend, Labour is going to listen to the public's concerns on welfare and at the same time be an effective opposition challenging Tory policies which are unfair and unworkable."

The change of heart was "the best way forward", he said.