In a significant policy reversal, the UK government is set to announce a major concession to Labour rebels regarding its planned welfare changes. According to multiple sources confirmed to the BBC, existing claimants of Personal Independence Payment (PIP) and the health element of Universal Credit will be exempt from the proposed cuts. Instead, the changes will only apply to future claimants.
As part of the deal, ministers are expected to accelerate a £1 billion support plan initially scheduled for 2029. This move is seen as a substantial climbdown by the government, which had been facing potential defeat if it failed to address the concerns of over 100 Labour backbenchers who had backed an amendment to block the welfare bill.
The concessions come after Prime Minister Sir Keir Starmer engaged in talks with Labour MPs to shore up support ahead of a crucial Commons vote on Tuesday. Starmer emphasized his commitment to implementing welfare reform with “Labour values and fairness.” While some Labour MPs have expressed satisfaction with the concessions, others, like Peter Lamb, Labour MP for Crawley, remain unconvinced, calling the changes “insufficient.”
The proposed Universal Credit and Personal Independence Payment Bill aims to save £5 billion annually by 2030 by altering eligibility criteria for disability and sickness benefits. Critics argue that the original plans would have required PIP claimants to prove a higher level of need for assistance with daily tasks.
The U-turn has drawn criticism from the Conservatives, with Shadow Chancellor Mel Stride labeling it “another completely unfunded spending commitment.” This marks the third major government U-turn in a month, following reversals on winter fuel payments and a grooming gangs inquiry, sparking concerns about the Prime Minister’s authority.
The bill’s second reading is scheduled for Tuesday, where MPs will debate and vote on the proposed changes. If passed, it will undergo further examination by Parliament.
