The proposed bill on welfare for disabled people scraped through in the House of Commons yesterday, following several major U-turns by the government over the past week. This came after the most significant rebellion by Labour MPs since the general election last year, with as many as 127 of the government’s own backbenchers signing an amendment to reject the bill.
The proposed legislation had sought to overhaul the existing system around Universal Credit and what is known as Personal Independent Payment, or PIP, which provides additional support for those with long-term physical or mental health conditions. The reforms aimed to tighten the rules on who is eligible to claim for PIP, with only the most severely disabled still able to claim, alongside cuts to incapacity benefits provided under Universal Credit.
This would have cut the amount spent on welfare by up to £5 billion but was criticised by charities and activists as punishing the most vulnerable. The proposals were labelled by the Disability Benefits Consortium as ‘cruel’, whilst the mental health charity Mind emphasised that cuts to benefits would only deepen the nation’s mental health crisis.
These proposed changes raised criticism from many within the Labour Party, with figures such as Diane Abbot arguing that they were not in keeping with Labour’s values. This culminated in a major rebellion by Labour backbenchers last Thursday where over 120 MPs threatened to vote against the government.
Anna Dixon, the MP for Shipley, was amongst the MPs signing the amendment to block the welfare reforms. In a post on X, the Labour MP stated, “while I strongly support the government’s wider reforms of employment support, job centres, and benefits, I have consistently raised concerns about the changes to PIP, including the lack of consultation with disabled people and the impact on carers.”
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As a result of this rebellion, the government announced major concessions to the proposed bill on Thursday 26th, following a day of negotiations between Prime Minister Keir Starmer and his backbenchers. They confirmed that the proposed changes will no longer affect existing claimants for PIP, but only those claiming benefits in the future. Planned changes to the amounts of incapacity support offered by Universal Credit had also been rowed back on.
This reversal in the government’s plans marked the third such U-turn seen over the past month, following recent changes to policy over Winter Fuel Payments, as well as the question of a national inquiry into grooming gangs. Opposition parties have questioned where the money for these concessions is to come from, with the proposed savings from this bill now having gone from as much as £5.5 billion by the end of the decade to just £2.5 billion.
It was thought that the proposed reforms would likely go through following these concessions, which have been welcomed by many within the Labour Party, such as Dame Meg Hillier, the Labour chair of the Treasury Select Committee, who had helped to organise the revolt on Thursday. However, as many as 50 MPs were still expected to vote against the reforms, with many arguing that the concessions given still do not go far enough in protecting the most vulnerable.
Bradford East MP Imran Hussain had been amongst those who have stated they will still be voting against. In a statement on X, Hussain warned that to push ahead with the proposed changes would risk making this “Labour’s poll tax moment,” referring to the controversial measure introduced by the Conservatives in 1989 which helped to bring down Margaret Thatcher’s premiership. Critics have argued that the concessions made would only serve to create a two-tiered system for disability benefits, with as many as 150,000 people potentially being pushed further into poverty if signed into law.
Work & Pensions Secretary Liz Kendall spoke in the Commons ahead of the vote in an attempt to dispel these concerns, promising further commitments to a review on PIP, and an extra £300 million investment into employment support for the sick and disabled. Disability minister Sir Stephen Timms then further announced that no changes to PIP would in fact take place until after a review of the benefit had been made.
Consequently, the bill has now passed its second reading by 335 votes to 260, but only after much of the original substance to it had been changed, and with 49 Labour MPs still voting against it. Opposition parties have criticised the government of floundering, Conservative leader Kemi Badenoch stating that “this is an utter capitulation. Labour’s welfare Bill is now a total waste of time. They should bin it, do their homework, and come back with something serious.”
