Welsh Secretary Stephen Crabb has seen named as the new Work and Pensions Secretary, replacing Iain Duncan Smith.
Planned cuts to benefits for disabled people are expected to be "kicked into the long grass" after widespread anger, according to a government source quoted by the press agency.
Chancellor George Osborne has said that charities will be consulted over the proposed changes as he moved onto the back foot following outrage from the public and many backbench MPs alike.
The government source today stressed that the changes were "not an integral part of the budget" and in an apparent move to distance No 10 from the policy.
They also said the Government was not "wedded" to figures in the Budget that suggested the shake-up of assessment criteria would shave around £1.3 billion a year off the PIP bill.
“This is going to be kicked into the long grass. We need to take time and get reforms right, and that will mean looking again at these proposals.
It is not an integral part of the Budget - it is a DWP package that came out beforehand.”
[Government source]