Thousands could lose up to £4,900 a year if the plan is retained in the forthcoming budget

Rachel Reeves is coming under intense pressure to use the budget to abandon a £1.3bn cut to benefits for people with disabilities, first announced by the Tory government, amid warnings it will lead to hundreds of thousands of the most vulnerable people losing almost £5,000 a year.

The leading independent thinktank, the Resolution Foundation, has called on the chancellor to drop or delay changes to the work capability assessment (WCA), arguing that key aspects of the policy have not been thought through, and that around 420,000 people who are unable to work through disability or ill-health could lose up to £4,900 a year.