Over 120 Labour MPs are actively opposing government-proposed benefit system reforms projected to save £5 billion by 2030.
Prime Minister Sir Keir Starmer remains committed to implementing the changes despite the potential internal rebellion.
Government projections indicate 3.2 million families will experience financial losses due to the alterations in Personal Independence Payment (PIP) and Universal Credit (UC), while 3.8 million families will see improvements.
PIP, currently supporting 3.7 million individuals (up from 2.05 million in 2019) with long-term physical or mental health conditions, comprises daily living and mobility components.
Proposed reforms will tighten daily living assessments, impacting approximately 800,000 individuals, according to the Office for Budget Responsibility (OBR).
Assessments evaluate daily tasks (food preparation, washing, dressing) on a 0-12 scale (0=no difficulty, 12=most severe).
From November 2026, claimants will require a minimum score of four points for a single activity, a stricter criterion than the current system.
For example, needing assistance with washing hair or lower body would score two points, while assistance with washing between shoulders and waist scores four.
The proposed payment amounts for the daily living component are:
Payments for the mobility component (unaffected by the changes) are:
PIP, a tax-free benefit paid every four weeks, is independent of savings or income and doesn’t impact other benefits or the benefit cap. Employment eligibility remains unchanged.
Currently, PIP is awarded for a period of one to ten years, subject to review or earlier reassessment if circumstances change. The government plans increased reassessment frequency for many recipients, but those with the most severe, permanent conditions will be exempt.
The government’s Universal Credit and Personal Independence Payment Bill (June 18th) guarantees a 13-week transitional payment for those losing PIP benefits.
A similar benefit, the Adult Disability Payment, exists in Scotland.
Universal Credit (UC), supporting 7.5 million individuals, is also subject to changes. Currently, over three million recipients are exempt from work requirements due to health conditions.
Standard UC for a single person (25+) is £393.45 monthly, more than doubling with a disability-related top-up (£416.19).
Proposed changes will raise the age for eligibility for this incapacity top-up to 22. This top-up will also decrease from £97 to £50 weekly by 2026-27, remaining frozen until 2029-30, affecting both new and existing claimants.
The basic UC payment will rise, but less than initially projected, reaching £106 weekly by 2029-30.
The Department for Work and Pensions (DWP) anticipates 3.2 million families will face financial losses (average £1,720 annually), encompassing current and future beneficiaries.
This includes:
However, these figures exclude the impact of a £1 billion investment aimed at assisting disabled individuals into employment.
The DWP projects that 3.8 million families will benefit from the increased standard UC allowance and assessment changes, gaining an average of £420 annually.
Significant concerns have been raised by numerous Labour MPs, particularly regarding the bill’s potential impact on disabled individuals.
An amendment signed by over 120 Labour MPs could lead to a vote rejecting the bill entirely, including prominent figures like former transport secretary Louise Haigh and Vicky Foxcroft, who resigned as a government whip in protest.
Parliamentary voting on the bill is scheduled for July 1st. The potential scale of Labour rebellion could jeopardize the government’s majority.
While the government is open to dialogue, Sir Keir Starmer contends the current welfare system is unsustainable and requires reform.
The government aims to support employable individuals while safeguarding those with severe, incapacitating conditions. A £1 billion investment in personalized job support is planned.
Changes are intended to decouple job seeking from benefit loss. The work capability assessment will be phased out by 2028, replaced by PIP assessments focused on disability impact rather than work capacity. A “right to try” system will protect individuals financially from unsuccessful job attempts.
The government will also consult on merging employment and support allowance and jobseeker’s allowance into a single, time-limited, non-means-tested benefit offering greater generosity but shorter duration.
Work and Pensions Secretary Liz Kendall emphasized enhanced income protection for contributors while facilitating their return to work.
Annual government spending on health and disability benefits totals £65 billion, projected to reach £100 billion by 2029 before these changes. PIP, a major component, will see spending nearly double to £34 billion.
Despite intended cost savings upon its 2013 introduction, PIP claimant numbers have increased. Mental health conditions are now the primary reason for 1.3 million working-age claimants (44% of the total).
The OBR forecasts £72.3 billion in working-age welfare spending by 2029-30, with an additional £25.4 billion for pensioners and children.
The average price in 2024 was £5,449, a 5.4% year-on-year increase.
A North Shields social supermarket provides crucial support to struggling families.
A prospective homebuyer reports a mortgage broker suggested a pay rise or finding a partner to secure financing.
The BBC visited a community centre in a deprived area of Wolverhampton.
Professional Music Technology closed its 11 UK stores after entering administration in June.