Stephen Crabb, the new work and pensions secretary, has announced the government will abandon controversial cuts to the Personal Independence Payments.
"I can tell the House we will not be going ahead with the changes to PIP that had been put forward," he said.
He added that the government would not fill the savings gap left in the budget by the U-turn with further cuts to welfare.
The announcement had been widely anticipated following the resignation of Iain Duncan Smith, Mr Crabb's predecessor.
Mr Crabb paid "huge tribute" to Mr Duncan Smith, and appeared to try to win back the support of disabled people, saying he believed it was possible to do "so much better" for them.
Crabb: "we will not be going ahead" with changes to personal independence payments - & he won't have to fill £1.4bn hole in budget. Amazing
George Osborne is due to defend his Budget in parliament today following the government u-turn on welfare cuts.
Mayor London weighs in on Iain Duncan Smith's resignation and the abandoned disability payment cuts on ITV's The Agenda tonight.
MPs wonder aloud whether the chancellor is 'too scared' to respond to an emergency question over his budget.