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The government has secured a victory on its benefits bill by a margin of 75 votes, following late concessions made to dissenting Labour MPs.
Ministers had previously softened the proposed legislation by reversing certain cuts to Universal Credit and safeguarding existing Personal Independence Payment (PIP) recipients from more stringent eligibility criteria.
Nevertheless, some Labour parliamentarians remained concerned that the revised PIP assessment standards would be implemented before the conclusions of an ongoing review could be considered.
In an effort to avert a potentially damaging defeat, the government announced a further policy reversal, committing to refrain from altering PIP regulations until the review’s findings have been duly assessed.
These last-minute amendments have effectively diluted the Universal Credit and Personal Independence Payment Bill, stripping it of its most impactful provisions.
The situation raises questions about the authority of Sir Keir Starmer, whose leadership has faced scrutiny following a series of recent policy U-turns, as well as that of Work and Pensions Secretary Liz Kendall.
Furthermore, it places strain on Chancellor Rachel Reeves’ fiscal planning, as projected savings of approximately £5 billion may now be delayed or forfeited altogether.
Helen Miller, the incoming director of the Institute for Fiscal Studies, suggested that these developments would “intensify the speculation over the summer about which taxes may rise and by how much”.
She also questioned the government’s credibility, stating, “It doesn’t bode well for those hoping this government will grasp the nettle and address the deeper, structural challenges facing the UK public finances.”
Following the vote, Kendall acknowledged, “I wish we had got to this point in a different way.”
She conceded that there were “lessons to learn from the process” but defended the bill, asserting that it established “really important reforms” to facilitate the return to work for those who are able.
Kendall maintained that Labour MPs were “100% behind the prime minister”.
After a period of intense debate in Parliament, the bill received preliminary approval with 335 votes in favor and 260 against. This outcome reduced the government’s working majority from 165 to 75.
Lawmakers are scheduled to continue scrutinizing the bill when it returns to the House of Commons on Wednesday, July 9.
Government ministers had anticipated that amendments made the previous week would persuade hesitant MPs to support the bill, but numerous members voiced ongoing concerns during the debate.
Less than two hours prior to the final vote, Disability Minister Sir Stephen Timms informed MPs that the government would make further concessions by removing clauses of the bill that would have implemented new PIP eligibility requirements.
“We will move straight on to the wider review and only make changes to Pip eligibility activity and descriptors following that review,” he told MPs.
Several MPs expressed anger and frustration regarding the late alterations. Labour MP Paula Barker stated, “Whilst grateful for the concessions, this has further laid bare the incoherent and shambolic nature of this process – it is the most unedifying spectacle that I have ever seen.”
Labour’s Mary Kelly Foy told MPs: “I popped out for a banana earlier on and, when I came back in, things had changed again. So I’m even more unclear on what I’m voting on.”
Following the vote, Labour’s Ian Lavery told the BBC: “This is an absolute shambles. I’ve never seen anything like it.”
Both the Liberal Democrats and the Conservatives criticized the process and said the bill should be pulled entirely.
The government initially outlined its plans for an overhaul of the benefits system in March, which included measures to restrict eligibility for PIP, the primary disability benefit in England, Wales, and Northern Ireland, and to freeze the health-related component of Universal Credit.
Accompanying these measures was a pledge of a £1 billion support package aimed at assisting disabled individuals and those with long-term health conditions in securing employment.
In defense of the proposals, the government has cited significant increases in the number of benefit claimants, arguing that adjustments are necessary to ensure the system’s long-term viability.
Ministers have also asserted that the existing framework fosters dependency on welfare, failing to provide adequate support for individuals to find employment.
However, mounting discontent had been brewing within Labour ranks for weeks, fueled by concerns that the proposed changes would exacerbate poverty.
Last week, over 120 MPs threatened to obstruct the bill, prompting the government to announce revisions ensuring that the stricter regulations would apply solely to claimants applying after November 2026, rather than existing recipients. Plans to freeze the higher rate of Universal Credit for current health-related claimants were also reversed, although new applicants would still receive reduced payments.
This concession proved sufficient to sway some Labour MPs, including Dame Meg Hillier, who had been at the forefront of efforts to block the bill.
During Tuesday’s debate, Hillier stated that she would support the government’s bill but cautioned ministers against disregarding the opinions of backbenchers in the future.
Conversely, her Labour colleague Rachael Maskell informed MPs that she would continue to oppose the bill, adding: “These Dickensian cuts belong to a different era and a different party – they are far from what this Labour Party is for.”
Pressure from backbench MPs ultimately led to Sir Stephen’s announcement in the House of Commons that the government would defer any modifications to PIP until after the conclusion of the review.
Despite these multiple concessions, 49 Labour MPs voted against the bill.
At times, Tuesday’s debate underscored a breakdown in trust between the government and its own backbenchers.
Even those Labour MPs who were swayed by the PIP concessions indicated that they would vote against the bill at a later stage if ministers failed to uphold their commitments.
Particular confusion surrounded the practical implications of Sir Stephen’s pledge to remove stricter PIP tests from the bill, and whether MPs would have a say in the matter.
Speaking afterwards, one of the rebels, Emma Lewell said “it was absolute, utter chaos” and “no serious way to make legislation”.
The South Shields MP told the BBC: “This is messing with disabled people’s lives – they’ve already been through hell since we first announced this bill and then today they’ll not know what the hell’s going on because quite frankly neither do MPs know what’s going on.”
Another rebel, Richard Burgon said: “If the government doesn’t deliver on its promises on personal independence payments, if they don’t take out cuts to universal credit there is a possibility that this bill could still be defeated.
“It is only a week to go but a week’s a long time in politics.”
Following the vote, Charlotte Gill from the MS Society said: “We thought last week’s so-called concessions were last minute. But these panicked 11th hour changes still don’t fix a rushed, poorly thought-out bill.”
Jon Sparkes, chief executive of learning disability charity Mencap, said the changes sounded “positive” adding: “We are pleased that the government has listened.”
James Taylor, executive director at the disability charity Scope, said the bill would still “strip thousands of pounds in support” from future universal credit claimants and urged the government to “engage with disabled people”.
Ministers hope a partial U-turn will win over Labour rebels when MPs vote on welfare changes later.
The level of satisfaction in Ashford and Folkestone appears to be very much policy dependent.
The prime minister described the benefits system as “broken” a day after he was forced to U-turn on plans for reforms.
Sir Keir Starmer uses his Welsh Labour conference speech to attack the leader of Reform UK.
The Government is boxed in from this week’s events – and lacks the Houdini skills to escape, says the BBC’s Faisal Islam
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