Labour's North East heartland is plotting a welfare cap rebellion.
Several North East MPs will either defy a party whip or not be at the House of Commons when Labour is told to vote in line with the coalition for a new cap on how much can be spent on state hand outs.
Ed Miliband has told his MPs to back a Budget plan to cap welfare at £119bn, ending a situation in which benefit spending is increased to match the number of claimants.
While party leader Mr Miliband is keen to avoid looking soft on welfare, across the North East, MPs have called for the party to proudly stand up for low income families.
Durham MP Grahame Morris said he will not be voting for the cap. He told The Journal: “I cannot vote for the welfare cap. By implication it plays to the Tory strategy of divide and rule demonising those on benefits as the undeserving poor.
“It conveniently ignores the fact that two thirds of the welfare budget goes on pensions that people have contributed to during their working lives. Another substantial slice goes on supporting those in work on low wages.
“Once again Labour must differentiate its position from the Tories. It is shameful of the Tories to seek to set the working poor against the disabled. There are better, fairer ways to limit benefit spending for example by limiting the £20bn taxpayer spend on housing benefits which goes to private landlords through the introduction of rent controls.”
Gateshead MP Ian Mearns said he will not be in the Commons for the vote as a result of select committee business, but would not have voted for the cap.
He said: “Inherent in this is a further reduction in real terms of benefits over time. If the economy has another significant downturn this limits the capacity of the state to respond to genuine hardship.
“And let’s not forget that only about 3% of the benefits bill is for jobseekers’ allowance, the biggest single pot is for pensions.”
And Blaydon MP Dave Anderson also hit out at the plan. He said: “The welfare cap is just another piece of the Coalitions jigsaw to make the poor, the weak and the disabled pay for the failures of big business and global capitalism.
“This vote comes in the same week that Lloyds have been exposed as continuing to exploit customers over the disgraceful PPI misselling scandal. It is these rogues and many others like them who should be carrying the can for economic failure and not the most vulnerable in our country.”
It is thought other MPs will not be in Parliament for the vote, avoiding the need to rebel. Some 20 MPs nationally are thought to be ready to vote against the cap.
Labour has said that since much of the cap on spending does not include benefits linked to increased unemployment, it is happy to accept the changes.
The party has hit back at claims that there is little to differentiate its economic policy from the coalition, insisting a future Labour government would “make different choices”.
Labour’s shadow work and pensions secretary, Rachel Reeves, said Labour would support the Government when voting on the welfare cap, but insisted the party would also “take tough decisions” over future spending if in office after the General Election.