Government reform of The Welfare Bill: Key updates and concerns
The government has secured a 75-vote majority in Parliament to pass its benefits bill, but only after making last-minute concessions to Labour rebels.
Initially, ministers had already scaled back parts of the bill, reversing some planned cuts to Universal Credit and ensuring current recipients of Personal Independence Payment (PIP) would be protected from tougher eligibility rules. Despite these changes, concerns persisted among Labour MPs about the timing of new criteria for PIP, which were set to be introduced before the findings of an ongoing review could be taken into account.
To avoid a potential defeat, the government made a further U-turn, announcing that changes to PIP eligibility rules would be postponed until the review’s recommendations had been fully considered. These eleventh-hour revisions have left the Universal Credit and PIP Bill stripped of many of its most impactful measures, leaving MPs to vote on a very watered-down version of the bill.
The backtracking has raised questions about the leadership of both Sir Keir Starmer and Work and Pensions Secretary Liz Kendall, whose authority has been undermined. It also puts pressure on Chancellor Rachel Reeves’ fiscal plans, as the anticipated £5 billion in savings may now be delayed or lost altogether.
Helen Miller, incoming director of the Institute for Fiscal Studies, noted that the uncertainty “will intensify speculation over the summer about which taxes may rise and by how much.” She added, “It doesn’t bode well for those hoping this government will address the deeper, structural challenges facing the UK’s public finances.”
Following the vote, Liz Kendall acknowledged the flawed process, saying, “I wish we had got to this point in a different way,” but defended the bill as a means to help people return to work through meaningful reforms. Labour MP Chris Curtis, who supported the bill from the beginning, echoed this sentiment. Speaking to BBC Radio 4’s Today programme, he said: “I don’t think it’s weakness to look at the evidence, reconsider your position, and end up in a better place.”
Changes to disability benefits: What you need to know
This week, the government outlined proposals to reform disability benefits, although no final decisions will be made until later this year and no immediate changes are expected.
One major proposal includes tightening eligibility for PIP by raising the threshold of points needed to qualify during assessments. This has raised concerns among disability advocates that people with mild or moderate learning disabilities could find it much harder to qualify for the support they need.
Key concerns:
- People with learning disabilities often rely on PIP to cover additional costs such as personal care, mobility aids, and specialist equipment. Reducing access to this support could significantly affect their quality of life.
- The government also plans to scrap the Work Capability Assessment (WCA) in 2028. After this, individuals will only undergo a single PIP assessment to determine eligibility for both PIP and the health-related component of Universal Credit.
This change could be beneficial by removing a major barrier that currently discourages people with learning disabilities from attempting to work for fear of losing their benefits. The government has committed to introducing a guarantee that trying work will not trigger a reassessment; a change long advocated by Mencap.
However, the shift also makes the proposed tightening of PIP criteria more concerning. If individuals are excluded from PIP, they will also lose access to extra Universal Credit support, compounding the risk of hardship.
There is still time before these changes are implemented in 2026. The government must take this opportunity to listen to people with learning disabilities and understand the real-world impact of these proposals.
If you have concerns about these changes, we recommend you contact your local MP.
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