The government has made some fairly significant concessions, but they will only apply to existing claimants
The government has made concessions in the Universal Credit and Personal Independence Payment bill after more than 120 Labour MPs signed a reasoned amendment opposing the bill.
Earlier this week, Prime Minister Keir Starmer dismissed the Labour rebellion against his welfare benefit changes as “noises off” but as the backlash grew, the government was forced to make concessions.
Overnight, Liz Kendall sent a letter to MPs detailing these fairly significant concessions. The bill is due for its second reading on Tuesday, and while it now appears more likely to gain support, the question remains: will the concessions be enough?
What are the concessions?
- New Personal Independence Payments (PIP) eligibility requirements from November 2026 will now apply only to new claimants, not existing claimants.
- Under the government’s planned reforms, people will only be eligible for the ‘daily living’ component of PIP if they score 4 or more points on a single task, like preparing food or managing a budget. This will make it much harder to qualify for PIP.
- All existing recipients of Universal Credit and any new claimant meeting the severe conditions criteria will have their incomes fully protected in real terms.
- There will be a ministerial review to ensure the benefit is “fair and fit for the future” and a “co-production” with disabled people, disability organisations and MPs.
What impact will the concessions have?
- It is estimated that the change in PIP payments will protect some 370,000 existing claimants who were expected to lose out following reassessment.
- The change will cost the government at least £1.5 billion, according to the Institute for Fiscal Studies.
How have Labour MPs who signed the rebel amendment reacted?
- Some senior rebels now appear willing to accept the concessions and support the government’s bill.
- Dame Meg Hillier, who tabled the “reasoned amendment” has said she is now willing to support the bill. She said the government has offered a “good deal” involving “massive changes to ensure the most vulnerable people are protected.”
- Several Labour MPs on the left of the party, including Diane Abbott, Richard Burgon, Nadia Whittome and Brian Leishman, have said they will still oppose the bill.
- One rebel Labour MP said he is aware of 50 colleagues who have said they will vote against the legislation. He also indicated it is “perfectly plausible” that Labour rebels will achieve “bill killing numbers” over the weekend.
Olivia Barber is a reporter at Left Foot Forward
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