Government U-turns on Welfare Cuts: PIP and Universal Credit Remain Intact

**Government Concedes on Disability Benefits as Pressure Mounts from Labour MPs**
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In a significant shift, the government has announced that individuals currently receiving Personal Independence Payment (PIP) and the health element of Universal Credit will not lose their entitlements, following intense backlash from Labour backbenchers over proposed welfare reforms. The announcement was made after more than a hundred Labour MPs signalled their opposition to the original proposals, leading to emergency discussions within the party.
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The controversy centred around reforms outlined in the Universal Credit and Personal Independence Payment Bill, which was due for its second reading in Parliament. The bill initially aimed to tighten eligibility criteria for PIP—an essential benefit for disabled people across England—and reduce support under Universal Credit. Under the government’s original plans, those already claiming support would have faced a rapid 13-week transition out of the system, provoking considerable anxiety among beneficiaries and campaigners.

Responding to mounting criticism, Work and Pensions Secretary Liz Kendall sent a letter to MPs assuring them that no current recipients of PIP would be removed from the scheme as a result of the new legislation. The Secretary clarified that any changes to eligibility criteria would only apply to new claimants from November 2026. This concession represents a marked change in approach, after weeks of concern that thousands might lose vital assistance.

Kendall further outlined that all existing Universal Credit claimants with health-related support, and new applicants meeting the most severe conditions, would see their incomes “fully protected in real terms”. She also promised a ministerial review into the changes, pledging that any future reforms would be designed in partnership with disabled people, their advocates, and MPs. Describing the reforms as “rooted in Labour values”, Kendall emphasised the government’s desire to ensure changes are “fair and fit for the future”.

These moves are being interpreted as a response to robust opposition from Labour’s own ranks. Some 126 MPs signed an amendment seeking to halt the bill over concerns that those with disabilities and chronic illnesses had not been adequately consulted. Dame Meg Hillier, chairwoman of the Treasury select committee, welcomed the government’s concessions, noting the importance of protecting the most vulnerable and involving them directly in shaping policy.

Despite these assurances, not all rebels are convinced. Prior to the shift, Labour MP Rachel Maskell expressed scepticism to the PA news agency, arguing that the only acceptable reform would shield all disabled people until a thorough consultation and redesign of the process is complete. She lamented what she described as “backroom deals” excluding those most affected from the conversation. Other MPs insisted that the new protections must be enshrined in the legislation itself, rather than existing as verbal commitments.

Prime Minister Sir Keir Starmer defended the need for urgent reform of what he called the “broken” welfare system and reaffirmed that further consultations would follow. Speaking in the Commons, Starmer said, “We want to see reform implemented with Labour values of fairness. That conversation will continue in the coming days, so we can begin making change together.”

Charities have reacted to today’s developments with a mixture of relief and caution. Mencap, a leading learning disability charity, hailed the government’s concession as a “huge relief” for those previously worried about having their support cut. Jackie O’Sullivan, Mencap’s director of strategy, stated that pulling financial assistance from disabled people is “not a fair way to mend the black hole in the public purse”. Conversely, the MS Society warned that watering down the proposals was not enough. Head of campaigns Charlotte Gill called on MPs to block the bill entirely, arguing that only a full halt could prevent disaster for people with disabilities.

Predictably, political opponents pounced on the government’s reversal. The Conservative Party branded the change “the latest in a growing list of screeching U-turns”. Shadow chancellor Mel Stride accused Starmer of making “another completely unfunded spending commitment”, warning that Labour’s approach would come at a cost to taxpayers.

The next stage for the controversial bill will come on Tuesday during its second reading, where the revised proposals and promises of further consultation will be tested before the full House of Commons. The developments signal not just a climbdown in the face of party dissent, but a renewed struggle to balance fiscal responsibility, public opinion, and the rights of disabled people in an evolving welfare landscape.

As parliamentarians and advocacy groups scrutinise the refreshed plans, the broader conversation about how to create a fair and resilient benefits system remains far from over.