The government has announced a major climbdown on its welfare reform to avoid a rebellion from Labour MPs.
Earlier this year, Keir Starmer’s government revealed plans to reform the welfare system in an effort to save £5bn a year by 2025.
The Universal Credit and Personal Independence Payment Bill would have restricted who could qualify for certain disability and sickness benefits.
Disabled people claiming the personal independence payment (Pip), which helps individuals with the increased costs of daily living, face having their benefits reviewed from the end of next year.
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But the bill caused huge backlash from dozens of Labour MPs, with some labelling them “morally unjustifiable.”
More than 100 MPs had signed an amendment that declined to pass the PM’s welfare changes and called for a pause, including for further consultation into the policy and for support to be in place before any changes.
But following negotiations between ministers and MPs on Thursday, it has now been confirmed major concessions will be made by government in the bill, the BBC reports.
The bill will now see current Pip claimants continue to receive what they currently get, as will recipients of the health element of universal credit, so planned cuts will only affect future claimants.
Minister will also fast-track a £1bn support plan originally scheduled for 2029.
A No 10 spokesperson said it had listened to MPs “who support the principle of reform but are worried about the pace of change”.
It is unclear how the changes to the bill will affect Chancellor Rachel Reeves spending, as the cuts had been factored into her recent Spring Statement.