The government has caved to its own rebel MPs and offered major concessions on planned welfare cuts.
Ministers had hoped to slash around 拢5bn from the UK’s benefits bill with significant changes to rules on personal independence payments (PIP) and universal credit (UC).
More than 120 Labour parliamentarians had publicly backed an amendment to the scheme, which risked stopping the draft legislation in its tracks. Faced with the prospect of a humiliating defeat in the House of Commons next Tuesday, when the proposals were due to be voted on, late last night Keir Starmer offered a series of concessions to stave off the looming revolt.
A letter from Work and Pensions Secretary Liz Kendall to MPs promised to row back on some changes to PIP and UC and was branded a “good deal” by Dame Meg Hillier, one of the leaders of the campaign to force a government u-turn.
The legislation is now expected to be approved when it goes before the House of Commons on Tuesday.
Here, Yahoo News UK looks at the changes and how they will affect the legislation.
What are the new changes to PIP?
Welfare reforms laid out in the Universal Credit and Personal Independence Payment Bill – as the draft law is known – were announced in March this year. They included controversial reforms to tighten the eligibility criteria for disabled people receiving personal independence payments (PIP).
Applications for PIP are based on an assessment of a person’s ability to complete everyday tasks, such as washing or preparing food.
Some estimates had suggested more than one million people could lose out if changes to these eligibility tests were approved.
Campaigners have consistently branded the changes potentially “catastrophic” for many disabled people.
and i the wake of growing outrage among its own MPS, the government has now promised to protect payments to existing claimants, with the new rules only applying to new claimants.
In her letter to MPs, Work and Pensions Secretary Liz Kendall said: 鈥淲e recognise the proposed changes have been a source of uncertainty and anxiety.
鈥淲e will ensure that all of those currently receiving PIP will stay within the current system. The new eligibility requirements will be implemented from November 2026 for new claims only.”
A review of PIP assessments led by disabilities minister Sir Stephen Timms and 鈥渃o-produced鈥 with disabled people has also been promised.
What are the new changes to universal credit?
Universal credit (UC) is the main benefit for working-age people and is currently worth about 拢400 per month to a single person aged over 25.
Someone with disability (or long-term health condition that limits their ability to work) could potentially see this more than double, with payments for incapacity worth an extra 拢423.27 per month.
Previously, changes would have limited eligibility for the incapacity top-up limited to claimants aged over 22.
The value of the top-up was also due to fall significantly by 2030 for new claimants and be frozen for new applicants.
Ministers have now promised payments to UC health benefits claimants will be “fully protected in real terms”.
In her letter to MPs, Work and Pensions Secretary Liz Kendall said: “l adjust the pathway of universal credit payment rates to make sure all existing recipients of the UC health element 鈥 and any new claimant meeting the severe conditions criteria 鈥 have their incomes fully protected in real terms.鈥
What is still in the bill?
Changes to the existing regimes for personal independence payments (PIP) and universal credit (UC) are expected to remain, but will apply to new applicants only, with existing claimants protected.
Changes to assessments for PIP are also expected to go ahead, but ministers have offered further concessions to rebels on this in the form of a review.
A merger of jobseeker’s allowance and employment and support allowances is also still expected to go ahead, as is a ‘right to try’ initiative to encourage people back into the workplace.
A 拢1 billion package of measures to help disabled people find work is also due to remain.
The bill had also been slated to include inflation-busting rises to UC payments over the next four years.