The government has emerged victorious in a vote on its benefits bill, winning by a margin of 75 votes. However, this success was only achieved after the government made last-minute concessions to Labour rebels.
Initially, the government had already diluted its plans by reversing some cuts to universal credit and safeguarding current personal independence payment (Pip) claimants from stricter eligibility criteria. Despite this, some Labour MPs were still dissatisfied, particularly with the proposed changes to Pip eligibility which were set to take effect before the completion of a review.
Fearing a humiliating defeat, the government announced a further reversal, declaring that it would not alter Pip rules until after the review’s recommendations had been considered.
These eleventh-hour alterations have effectively gutted the government’s Universal Credit and Personal Independence Payment Bill, stripping it of its most significant measures.
This move undermines the authority of Sir Keir Starmer, who has faced criticism for a series of recent U-turns, as well as that of Work and Pensions Secretary Liz Kendall. It also places pressure on Chancellor Rachel Reeves’ spending plans, as potential savings of £5 billion will now either be delayed or lost entirely.
Helen Miller, who will soon become the director of the Institute for Fiscal Studies think tank, stated that these figures will intensify speculation about potential tax increases and their extent. She also raised concerns about the government’s credibility, stating that this does not bode well for addressing the deeper, structural challenges facing the UK’s public finances.
Following the vote, Kendall expressed her regret at the process, stating that she wished they had reached this point in a different manner. She defended the bill, however, arguing that it implements crucial reforms to support those 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. This saw the government’s working majority decrease 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. However, during the debate, many still expressed concerns.
Less than two hours before the final vote, disability minister Sir Stephen Timms informed MPs that the government was making further compromises by removing sections of the bill that would have introduced new Pip eligibility rules.
He stated, “We will move straight on to the wider review and only make changes to Pip eligibility activity and descriptors following that review.”
Several MPs expressed frustration and anger at the last-minute changes. Labour MP Paula Barker stated, “While grateful for the concessions, this has further exposed the incoherent and chaotic nature of this process – it is the most unedifying spectacle I have ever seen.”
Mary Kelly Foy, also of Labour, told MPs, “I stepped out for a banana earlier, and when I came back in, things had changed again. So I am even more unclear on what I am voting on.”
After the vote, Labour’s Ian Lavery told the BBC, “This is an absolute shambles. I have never seen anything like it.”
Both the Liberal Democrats and 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 Pip eligibility and freeze the health-related element of universal credit. Alongside these changes, it promised a £1 billion support package to assist disabled individuals and those with long-term conditions in finding work.
In defense of these proposals, the government pointed to a sharp increase in the number of benefit claimants and argued that making changes was necessary to ensure the system’s long-term sustainability. Ministers also stated that the current system leaves individuals reliant on welfare without providing them with proper support to secure employment.
However, discontent within the Labour party had been growing for weeks, with concerns that these measures would push individuals into poverty. Last week, over 120 MPs threatened to block the bill, prompting the government to announce changes that would ensure the stricter rules would only apply to new Pip claimants after November 2026. The government also reversed plans to freeze the higher rate of universal credit for current health-related claimants, although new applicants would still receive reduced payments.
These changes were enough to persuade 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 ministers not to disregard backbenchers’ opinions in the future.
However, her colleague Rachael Maskell informed MPs that she would still oppose the bill, adding, “These Dickensian cuts belong to a different era and a different party – they are far from what this Labour Party stands for.”
The pressure from backbench MPs prompted Sir Stephen’s announcement in the House of Commons that the government would only make changes to Pip after the review’s conclusion.
Despite multiple climbdowns, 44 Labour MPs still voted in favor of an amendment to block the bill’s passage.
At times, Tuesday’s debate highlighted a breakdown of trust between the government and its own backbenchers. Even those Labour MPs who were convinced by the Pip concessions stated that they would vote against the bill at a later stage if the government did not keep its promise.
There was particular confusion about what Sir Stephen’s promise to remove stricter Pip tests from the bill would mean in practice and whether MPs would have a say in the matter.
Speaking afterwards, one of the rebels, Emma Lewell-Buck, stated, “It was absolute, utter chaos, and no serious way to make legislation.” She added, “This is playing with disabled people’s lives – they have already been through hell since we first announced this bill, and now they will not understand 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 if they do not remove cuts to universal credit, there is a possibility that this bill could still be defeated. A week may seem like a short time, but in politics, it is a long time.”
Following the vote, Charlotte Gill of the MS Society stated, “We thought last week’s so-called concessions were last minute, but these panicked eleventh-hour changes still do not fix a rushed, poorly thought-out bill.”
Jon Sparkes, chief executive of the learning disability charity Mencap, welcomed the changes, stating, “We are pleased that the government has listened.” James Taylor, executive director at the disability charity Scope, expressed concern that the bill would still “strip thousands of pounds in support” from future universal credit claimants and urged the government to engage with disabled individuals.