THE GOVERNMENT'S crisis over its controversial plans to cut disability benefits deepened last night as Labour peers queued up to

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THE GOVERNMENT'S crisis over its controversial plans to cut disability benefits deepened last night as Labour peers queued up to attack the legislation. Lord Ashley of Stoke, the long-time campaigner for disabled rights, confirmed that he would introduce amendments to reverse the reduction and means- testing of incapacity benefits during its committee stage. Speaking during the second reading debate of the Welfare Reform and Pensions Bill, Lord Ashley appealed to the Government to reconsider. "I cannot believe that a Labour government would want to introduce cuts to the most vulnerable in society," he said.Lord Ashley's amendment, which is similar to the one put forward by Labour backbenchers in the Commons, is likely to be overwhelmingly supported be peers and further embarrass the Government.Tony Blair suffered an earlier setback to his plans for welfare reform when 67 Labour backbenchers voted against the cuts, and others abstained.During the debate, Lord Ashley's concern was echoed by Baroness Castle of Blackburn, the former Cabinet minister, who said it was unbelievable that "poor disabled" would have to be supported by "less poor disabled people".But, opening the debate, Baroness Hollis of Heigham, the junior social security minister, defended the legislation, stressing no existing claimant would be affected by the changes."Incapacity benefit was and is intended to be an earnings replacement benefit when illness or disability unfortunately forces people to stop work."However, over the past 20 years, it has become for many an unemployment benefit."Four out of 10 claimants were previously unemployed and someone who had worked for only six months and been unemployed for 20 years could claim it. "We don't believe that's right," she said.She confirmed that Alistair Darling, the Secretary of State for Social Security, was prepared to review whether the pounds 50-a-week pension threshold for the means-testing of incapacity benefits was set at the right level.Lord Higgins, for the Tories, said: "In our view the principle involved here is wrong. We are very concerned indeed at the way in which the question of entitlement to incapacity benefit is going to be reduced because people have been prudent enough to provide for a pension.". WOMEN IN Britain earn considerably less than men because they do not get the same career advice while they are at school, research has found. Baroness Jay of Paddington, minister for Women, said yesterday that the causes for the pay gap began before girls reached the age of 20, resulting in women suffering from a "forfeit of pay". Such deep-rooted inequalities meant that an average mother of two forgoes 55 per cent of her potential earnings over her lifetime - which amounts to an estimated pounds 230,000, research for the Government's Women's Unit found.Lady Jay said it was "startling" that pay inequalities were not necessarily linked to educational qualifications but to a lack of information at school which meant there was a "cost to being female".She said: "There is something about being a woman which means you suffer a forfeit on pay, which is depressing.

This is an in-built disadvantage for women, which increases even further when they have children."The findings were disclosed as EU-wide research found that women in Britain earn less than three-quarters as much as men for equivalent work, even lower than the European average of 76.3 per cent. The pay gap is even bigger among self-employed workers, with women earning just 39 per cent of the sum achieved by their male counterparts.Lady Jay said ministers would aim to improve information and advice given to teenage girls. But they would also seek to improve young women's financial literacy to set up their own businesses. The Treasury wanted to encourage banks and insurance companies to lend money to women entrepreneurs.. Commons 9.30am: Football (Offences and Disorder) Bill, report; Adoption (Intercountry Aspects) Bill report; Fur Farming (Prohibition) Bill. Lords 11am:Protection of Children Bill, committee.. CHARLES KENNEDY will pledge to continue the close co-operation between Labour and the Liberal Democrats if he wins the battle starting today to succeed Paddy Ashdown as the party leader.

Mr Kennedy, front-runner in a crowded race with seven potential candidates, has distanced himself in the past from Mr Ashdown's policy of working closely with Tony Blair. Although many Liberal Democrat activists are critical of Mr Ashdown's strategy, Mr Kennedy has decided not to "play to the gallery" in the election by promising to weaken links with Labour. He will say that the cabinet committee on which senior Liberal Democrats sit alongside Labour ministers will continue its work if he becomes leader, although he will not extend its remit."The committee has been a success and he would continue with it," said one close ally. At the same time, Mr Kennedy will promise to ensure the Liberal Democrats maintain their distinctive identity and are not swallowed up by Labour.However, the offer of co- operation will not extend only to Labour. Yesterday Mr Kennedy told BBC News Online that he would extend the co- operation to pro-European Tories such as Kenneth Clarke.Today Mr Kennedy will throw his hat into the ring when he speaks to his local party in Ross, Skye and Inverness West. "Everyone acknowledges that Charles is a brilliant communicator," said his campaign manager, Matthew Taylor, MP for Truro. "He is also well placed to keep the party united, since he is a team player and his views reflect the centre of gravity in the party."The two other candidates out of the blocks today will be Jackie Ballard, MP for Taunton and the party's women's issues spokeswoman, and David Rendel, MP for Newbury and social security spokesman.Ms Ballard will outline an unashamedly left-of-centre manifesto and will concentrate on tackling poverty and social issues.The third main opponent of Lib-Lab co-operation is Simon Hughes, MP for Southwark North and Bermondsey and health spokesman. Mr Hughes, one of the best-known and longest-serving of the party's MPs, was the first to declare his candidacy when the European polls closed at 10pm last night.Don Foster, MP for Bath and Liberal Democrat education spokesman, will unveil his campaign on Tuesday.