The DWP will end benefit sanctions that last more than six months, Tory welfare chief Amber Rudd said today.
The Work and Pensions Secretary Amber Rudd announced the move after years of complaints that the system penalised the most desperate.
And she admitted sanctions may have damaged the Tory brand, saying: "If there has been damage I hope we can reverse that."
Despite her announcement today, Ms Rudd said benefit sanctions will continue.
But she said there will be a review to ensure penalties are "proportionate, particularly for the most vulnerable".
She said: "I will end financial sanctions for welfare claimants that last for 3 years.
"Such sanctions were rarely used, but I believe they were counter-productive and ultimately undermine our goal of supporting people into work.
"In the future, the longest length of a sanction will be 6 months."
It came as part of a wide-ranging speech that called for a 21st Century approach to work in what many will see as a pitch for the Tory leadership.
Ms Rudd said MPs must "hold our nerve" and "back" Theresa May but did not rule out running for the top job when the Prime Minister leaves.
This breaking news story is being updated.