Peers have reluctantly backed down in their battle with MPs over a cut to disabled people's benefits after being accused of "overstepping their mark".

The Government was twice defeated in the Lords over reducing Employment and Support Allowance (ESA) for people in the work-related activity group (Wrag) from £103 to £73.

But the £30 a week cut is set to go ahead after disappointed and angry peers bowed to the elected Commons, which overturned both defeats.

Employment Minister Priti Patel slammed the Lords last week for "overstepping their mark" and insisted the Government must press ahead with the plan, arguing it would provide incentives for people to get in to work.

But today independent crossbencher Lord Low of Dalston warned: "This is a black day for disabled people."

The Welfare Reform and Work Bill has been at the centre of a parliamentary tussle between MPs and peers, with some Tory MPs also expressing misgivings about the ESA cut, which will apply to new claimants next year.

Work and Pensions minister Lord Freud appealed to peers not to continue with their opposition to the plan, insisting they had "discharged their duty" by scrutinising the Bill to remove "unintended consequences" and sending back concerns for the Commons to reconsider.

But Lord Low said the Government's action was "emblematic of the way this Conservative Government has chosen to treat disabled people".

He added: "By this action the Government has betrayed the trust of disabled people and they shouldn't be surprised if they forfeit it for the rest of their time in office."

Lord Low said the Commons had spoken decisively and peers must bow to their wishes but only under protest.

"Don't let anyone kid you this is democracy in action," he said. "There is more to democracy than just being elected."

The Commons was more "politicised and subservient to the whips," who were working overtime last week to overturn the last Lords defeat on the issue, Lord Low said.

Paralympic gold medallist Baroness Grey-Thompson said she was bitterly disappointed that this "dreadful and punitive" part of the Bill was going ahead.

Parliamentary procedure had prevented her putting down another amendment opposing the move, which would have a negative impact on thousands of people's lives.

"It may be seen as a victory in terms of voting numbers in the Commons but we can't forget there are many disabled people who will lose out."

Lady Grey-Thompson said the cut would make it harder for disabled parents to move into work or remain in work if their condition deteriorated.

Another independent crossbencher, Baroness Campbell of Surbiton, said it was wrong that the "niceties of parliamentary protocol" should be allowed to "trump" the needs of disabled people.

"I hope and pray we don't look back on this day as the moment we pushed some of the most severely disabled people in Britain over the edge," she warned.

Liberal Democrat Baroness Manzoor said she was also disappointed by the Government's stance when Britain was the fifth richest economy in the world.

"To let down people who find themselves with limited capacity to work due to circumstances beyond their control can't be right," she said.

Independent crossbencher Baroness Meacher warned that for the most vulnerable the cut was "terrifying" and bound to lead to increased debt.

Condemning the "truly terrible" actions of the Treasury, she urged ministers to monitor the number of suicides in the year after the change comes in, adding: "I am certain there will be people who cannot face the debt and the loss of their home, who will take their lives."

For the Opposition, Lord McKenzie of Luton agreed that it was a "sorry occasion" and accused ministers of making "meagre concessions" in what remained a "bad Bill".

Motions not to disagree with the Commons over the move were agreed without a vote.

Elliot Dunster, group head of policy, research and public affairs at disability charity Scope, commented: "Reducing employment and support allowance will have a harmful impact on disabled people.

"We're deeply disappointed that the Government is pushing ahead with its plans despite opposition from the House of Lords and many MPs.

"Half a million disabled people will be affected by this proposal - losing around £30 a week - at a time when they are already struggling to make ends meet.

"Reducing disabled people's incomes won't incentivise them to find a job. It will just make life harder.

"The Government has committed to halving the disability employment gap, but cutting financial support is not the answer."