The 10 per cent cut to Council Tax Benefit will force many to pay the tax for the first time. It could prove the most disastrous of the coalition's welfare reforms.
Grayling's reforms show the coalition hasn't learned from the failure of the Work Programme.
Asking the better off to sacrifice a £300-a-year benefit, could save the same people tens of thousands of pounds in care bills.
Four Lib Dems, including Sarah Teather and Julian Huppert, voted against the bill and two abstained.
Raising benefits by less than the rate of inflation is a poverty-producing policy.
At present, there are almost no voucher recipients among the poorest 40 per cent of households.
Osborne's plan to cut benefits will force more of the poorest families to choose between heating and eating.
After being accused by Labour of "running scared", Cameron says "we should go on having" TV debates.
Lord Hill, the minister who Cameron wouldn't listen to, replaces Lord Strathclyde as leader of the House of Lords.
"We will continue to put political partisanship to one side to govern in the long-term interests of the country."