Labour’s Work and Pensions Secretary Liz Kendall said she hopes rebel Labour MPs will now support controversial legislation after a dramatic u-turn overnight
Government announces concessions to welfare Bill after talks
Liz Kendall has said she hopes a dramatic welfare climbdown changes rebel minds.
Labour ‘s Work and Pensions Secretary told broadcasters she is optimistic that major concessions – which will see current PIP claimants continue to receive full payments – make a difference. The benefit changes were in doubt after 126 Labour MPs signed an amendment that would torpedo the measures.
Some Labour MPs appear to be convinced, although the Government still faces a showdown in a key vote on Tuesday. Ms Kendall said: “I hope these changes will mean we get support for our bill, a bill that wants to ensure fairness in the welfare system for people who really need support and fairness for the taxpayer, too. But we also all agree that there do need to be changes in future to make sure that people who can work do so, we protect those who can’t, but we make the welfare state sustainable for the future.”
Overnight the Government announced a string of concessions aimed at steering off a rebellion over personal independence payments (PIP) and health-related Universal Credit benefits. In a bid to satisfy rebels Ms Kendall announced the Government would plough ahead – but made key concessions.
The move has satisfied some, including Dame Meg Hillier, who put forward the amendment that sparked the crisis. She described it as a “positive outcome” and said ministers had come up with a “workable compromise”.
But others warned the compromise would create a “two-tier” system of disability payments, as Labour critics made clear they were going nowhere.
Prime Minister Keir Starmer is relying on enough MPs switching their opposition to get the Universal Credit and Personal Independence Payment Bill through a make-or-break vote on Tuesday.
Nadia Whittome, who was one of 126 who signed a motion that threatened to completely torpedo the legislation, told the BBC: “I’m very clear that these revised proposals are nowhere near enough and actually would create a two tier benefit system.”
She explained: “We have a situation where someone with the same disability and the same level of needs doesn’t get PIP just because they became disabled at a later date or gets less money in the Universal Credit health element because they became disabled at a later date.
“If you’re somebody with a fluctuating or degenerative condition who doesn’t need PIP or the Universal Credit health element now, but knows that you’ll probably need it in the future, that’s not going to be any comfort to you.
“If you’re a parent of a disabled child who knows that their child is likely to need PIP in the future, that’s not going to be any comfort to you.”
And Andy McDonald, who is also at the left of the party, confirmed he would still vote against the Bill. He told Times Radio: “Yes, I’ll be voting against it because it hasn’t dealt with the totality of the picture. It is bringing about the change, it’s just poverty delayed, or poverty postponed for millions of people in the future. And as it currently stands, despite rumours to the contrary, people who are received a personal independence payment or the UC health element are not living in the lap of luxury.”
And he added: “It’s certainly not a compromise for those future claimants. They’re going to be, the deficit that’s going to be visited upon them is going to be enormous.”
Fellow left-winger Rachel Maskell said: “As the Government is seeking to reform the system, they should protect all disabled people until they have completed their co-produced consultation and co-produced implementation.
“I cannot vote for something that will have such a significant impact … as disabled people are not involved, it is just a backroom deal.”
The Government was forced to act after a “reasoned amendment” was put forward by Dame Meg demanding a re-think. It threatened to inflict a bruising defeat on the Prime Minister and Ms Kendall.
Following last night’s announcement, Dame Meg said: “This is a positive outcome that has seen the Government listen and engage with the concerns of Labour MPs and their constituents.
“It’s encouraging that we have reached what I believe is a workable compromise that will protect disabled people and support people back into work while ensuring the welfare system can be meaningfully reformed.
“This means that disabled people currently in receipt of PIP and the health element of universal credit will continue to receive the same level of support.”
Ms Kendall confirmed that people who currently claim PIP will not be affected by the changes.
Instead the Government’s reforms, which will limit the number of people who are eligible, will not come into effect until November 2026. And crucially, she announced, the criteria will affect new claims only.
Alongside the changes to PIP eligibility, the Government is also seeking to limit access to the health element of Universal Credit. Ms Kendall told disgruntled MPs that all those who claim it, and new claimants who meet “severe conditions” criteria, will not lose out.
She said these people will “have their incomes fully protected in real terms”.
The Work and Pensions Secretary also said there will be a ministerial review of the PIP assessment. This will look at the way claims are decided, and will be led by Sir Stephen Timms, the Minister for Social Security and Disability.