The government has secured a 75-vote majority in a vote on its benefits bill, but only after making last-minute concessions to appease Labour rebels.
Previously, the government had already weakened its plans by reversing some cuts to universal credit and protecting current claimants of personal independence payment (Pip) from stricter eligibility rules.
However, concerns remained among some Labour MPs that the new Pip criteria would be implemented before the recommendations of a review could be considered.
Fearing a potential defeat, the government announced another U-turn, stating that it would not change Pip rules until the review’s conclusions were taken into account.
These last-minute changes have significantly reduced the impact of the government’s Universal Credit and Personal Independence Payment Bill.
This move has weakened the authority of Sir Keir Starmer, who has faced criticism for a series of U-turns, as well as that of Work and Pensions Secretary Liz Kendall.
It also puts pressure on Chancellor Rachel Reeves’ spending plans, as potential savings of £5bn will now be delayed or lost entirely.
Helen Miller, the incoming director of the Institute for Fiscal Studies think tank, said that these figures would “fuel speculation over potential tax increases and their extent” over the summer.
She also questioned the government’s credibility, stating that this does not bode well for addressing the deeper, structural challenges facing the UK public finances.
Following the vote, Kendall expressed her regret at the process, stating that “I wish we had reached this point in a different manner.”
She defended the bill, claiming that it implements important reforms to help those who are capable of working.
She also assured that Labour MPs are fully supportive of the prime minister.
After a tumultuous few hours in Parliament, MPs voted 335-260 in favor of the bill. However, this resulted in the government’s working majority being reduced from 165 to 75.
The bill will continue to be scrutinized when it returns to the House of Commons on July 9th.
The government had hoped that the changes made last week would convince wavering rebels to support the bill, but many still expressed concerns during the debate.
Less than two hours before the final vote, disability minister Sir Stephen Timms announced further compromises, removing sections of the bill that would have introduced new Pip eligibility rules.
He stated, “We will proceed directly to the broader review and only make changes to Pip eligibility activity and descriptors after the review has concluded.”
Several MPs expressed frustration and anger at these last-minute changes. Labour MP Paula Barker stated, “While I am grateful for the concessions, this process has exposed the chaotic and disorganized nature of the government’s approach – it is the most unsightly spectacle I have ever witnessed.”
Mary Kelly Foy, another Labour MP, also expressed confusion and uncertainty, stating “I left for a moment and when I returned, everything had changed. I am even more unsure about what I am voting on now.”
Following the vote, Labour’s Ian Lavery described the situation as a “complete mess” and stated, “I have never seen anything like it.”
Both the Liberal Democrats and the Conservatives criticized the process and called for the bill to be withdrawn entirely.
In March, the government announced its plans for a shake-up of the benefits system, including measures to limit eligibility for Pip and freeze the health-related element of universal credit.
Along with these measures, the government promised a £1bn support package to help disabled individuals and those with long-term conditions find employment.
In defense of these proposals, the government pointed to the steep increase in the number of benefit claimants and stated that changes were necessary to ensure the sustainability of the system in the future.
Ministers also argued that the current system leaves individuals dependent on welfare without providing proper support to find work.
However, there has been growing discontent among Labour MPs in recent weeks, who fear that these changes will push people into poverty.
Last week, over 120 MPs threatened to block the bill, leading the government to announce changes that would ensure the stricter rules only apply to those who claim after November 2026, rather than existing claimants. They also reversed plans to freeze the higher rate of universal credit for existing health-related claimants, although new applicants would still receive reduced payments.
These changes were enough to convince some Labour MPs, including Dame Meg Hillier, who had led efforts to block the bill.
During the debate on Tuesday, she stated that she would support the government’s bill but warned them not to ignore the opinions of backbenchers in the future.
However, her party colleague Rachael Maskell stated that she would still oppose the bill, stating, “These cuts belong to a different era and a different party – they are not in line with the values of the Labour Party.”
The pressure from backbench MPs led to Sir Stephen’s announcement in the House of Commons that the government would only make changes to Pip after the review has concluded.
Despite these multiple concessions, 49 Labour MPs voted against the bill.
During the debate, there were signs of a breakdown in trust between the government and its own backbenchers.
Even those Labour MPs who were convinced by the Pip concessions stated that they would still vote against the bill if the government does not keep its promises.
There was confusion regarding what Sir Stephen’s promise to remove tighter Pip tests from the bill would mean in practice and whether MPs would have a say in the matter.
After the vote, one of the rebels, Emma Lewell-Buck, described the situation as “absolute chaos” and stated that this is not a serious way to make legislation.
The South Shields MP also stated, “This is playing with the lives of disabled people – they have already been through a lot since this bill was first announced, and today they will not know what is going on because, quite frankly, neither do MPs.”
Another rebel, Richard Burgon, stated, “If the government does not deliver on its promises regarding personal independence payments and does not remove cuts to universal credit, there is a possibility that this bill could still be defeated.
“A week may seem like a long time, but in politics, it can make a big difference.”
Following the vote, Charlotte Gill from the MS Society stated, “We thought last week’s concessions were last-minute, but these panicked last-minute changes still do not address the rushed and poorly thought-out nature of this bill.”
Jon Sparkes, the chief executive of learning disability charity Mencap, stated that the changes sound “positive” and added, “We are pleased that the government has listened.”
James Taylor, the executive director at the disability charity Scope, stated that the bill will still “strip thousands of pounds in support” from future universal credit claimants and urged the government to engage with disabled individuals.