The Prime Minister Keir Starmer has backed down after pressure from Labour rebel MP’s iover his welfare reforms bill.
Reports this morning say that he has made major concessions over PIP payments and Universal Credit.
Details have emerged of the compromise sent to MP’s which will see all of those currently receiving PIP staying within the current system.
New eligibility requirements will be implemented from Nov 2026 for new claims only.
All existing recipients of the UC health element and any new claimant meeting the severe conditions criteria will have their incomes fully protected in real terms.
There will be a Ministerial review of the PIP assessment which will be jointly with disabled people, the organisations that represent them, and MPs.
Billions in more funding for job support will be brought forward
The rebels claimed the proposed cuts cuts could push 400,000 more people into poverty—including 50,000 children.
Dame Meg Hiller, the lead Labour MP rebel, said:
“This is a positive outcome that has seen the Government listen and engage with the concerns of Labour MPs and their constituents.
“It’s encouraging that we have reached what I believe is a workable compromise that will protect disabled people and support people back into work while ensuring the welfare system can be meaningfully reformed.
“This means that disabled people currently in receipt of PIP and the health element of Universal Credit will continue to receive the same level of support.
“That future changes to disability support will be co-produced with disabled people, building on the work of Minister Stephen Timms MP to create a system that involves disabled people in decisions about their lives.
“And that employment support will be brought forward and substantially improved so that people who want to work are not trapped in the benefit system.
“This is a good and workable compromise and shows that the Labour Government has listened and that working together with Labour MPs can move forward to support vulnerable disabled people, reform the welfare system in a just and inclusive way and contribute towards the economic growth and prosperity this country so desperately needs.”
