The social care plan would have introduced an £86,000 cap on the amount an older or disabled person would have to pay towards their support at home or in care homes from next October.
After spending £86,000 on their care, people’s costs would be paid for by local authorities.
The threshold for getting some council support to pay for costs, before exceeding the cap, would also be made more generous, with people with assets up to £100,000 able to qualify, rather than £23,250 currently.
The Conservative government had already delayed the plans by two years and got rid of the National Insurance rise which was meant to fund them.
Ms Reeves estimated that scrapping the reform would save £1bn by the end of next year.
Asked if the cap would be reintroduced at a later date, Ms Reeves said her colleague Health Secretary Wes Streeting would be working with the sector to improve social care.
