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Home » Welfare bill passes crunch vote after dramatic PIP U-turn – what you need to know
Politics

Welfare bill passes crunch vote after dramatic PIP U-turn – what you need to know

By staff1 July 2025No Comments4 Mins Read

Plans to restrict eligibility for Personal Independence Payments (PIP) were shelved at the eleventh hour to see off a Labour rebellion – gutting the Government’s welfare reforms

20:12, 01 Jul 2025Updated 20:12, 01 Jul 2025

Keir Starmer caved to Labour MPs over the Government's welfare reforms
Keir Starmer caved to Labour MPs over the Government’s welfare reforms(Image: POOL/AFP via Getty Images)

Keir Starmer’s plans to cut disability benefits are in tatters after Labour rebels forced the Government into another climbdown.

Plans to restrict eligibility for Personal Independence Payments (PIP) were shelved at the eleventh hour to see off a Labour rebellion.

The concessions were enough for the Government to win a key Commons vote on the legislation – but the watered down bill was branded a “complete farce” by one rebel, while others called for it to be ditched completely.

The chaotic scenes were extraordinary for a Government with a working majority of 165 – and just under a year since Mr Starmer won a landslide general election victory.

Here’s what you need to know.

READ MORE: Keir Starmer suffers biggest rebellion yet on watered-down DWP benefit cuts

Work and Pensions Secretary Liz Kendall defended the plans in the Commons but later the legislation was ripped apart
Work and Pensions Secretary Liz Kendall defended the plans in the Commons – before the legislation was ripped apart(Image: Wiktor Szymanowicz/Future Publis)

What just happened?

The Government gutted its plans to cut disability benefits only 90 minutes before a crunch vote where dozens of Labour MPs were threatening to revolt.

The Universal Credit and Personal Independence Payments (PIP) Bill was designed to tighten eligibility for these two key disability benefits.

But the entire section on PIP will now be removed and planned cuts shelved until a review reports back in autumn 2026.

The Government won the vote tonight after watering down the bill.

Disabled groups have been protesting against the planned cuts
Disabled groups have been protesting against the planned cuts (Image: Getty Images)

What is changing?

Plans to make it harder for future claimants to qualify for PIP had been due to come into force in November 2026.

This has now been delayed until Disabilities Minister Sir Stephen Timms has conducted a promised review into how PIP is assessed.

The Government has already ditched plans for PIP changes to apply to existing claimants, protecting around 370,000 people who had been expected to lose the benefit.

What will the review look at?

The Timms review will look at the assessment criteria for PIP, which was drawn up a decade ago.

Claimants are assessed using a points system, with scores for how difficult they find tasks like washing, dressing, using the toilet and cooking for themselves.

The Government had proposed requiring people to score a minimum of four points in at least one activity.

Under the current system, needing help to wash or dress your lower body, or help to cook a simple meal, was worth two points.

The review, which will be done with disabled people, will look at whether the criteria “effectively capture the impact of long term health conditions and disability in the modern world “.

It will also look at the role of PIP assessment and whether other evidence should be considered.

It is expected to report back in autumn 2026.

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What stays the same?

Plans for cuts to the health element of Universal Credit (UC) are the only thing left in the bill.

The UC health top up will be slashed to £50 a week for new claimants from April 2026, while existing claimants will still receive a weekly payment of £97.

An above-inflation increase in the standard allowance of UC remains.

What does it mean for Keir Starmer?

It’s hard to overestimate what a blow this is to the Prime Minister.

He repeatedly argued that this plan would help to fix the broken welfare system.

But despite his massive majority, his own MPs wouldn’t let him make these changes.

READ MORE: Join our Mirror politics WhatsApp group to get the latest updates from Westminster

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