The government has confirmed that it will make significant changes to its planned benefits reforms in response to criticism from its own party members.
Liz Kendall, the Work and Pensions Secretary, informed Labour MPs that current recipients of the personal independence payment (Pip) and the health element of universal credit will continue to receive the same benefits. The planned cuts will only affect future claimants.
This change of direction came after the government faced the possibility of defeat in the Commons if it did not address the concerns of more than 100 backbenchers.
While some rebels welcomed the move, Kendall stated that the bill was now in a favorable position and she was optimistic that it would be passed by Parliament.
Follow updates on this storyChris Mason: This is the most awkward of Labour's U-turn hat-trick
Speaking to broadcasters, Kendall added that the government’s plans would provide “record levels of support” to help those who are able to work find employment, while also protecting those who are unable to work.
When asked if this U-turn would make it harder for the government to make difficult decisions in the future, Kendall responded, “There is strength in listening – when you talk to those with knowledge and experience, you end up in the right position.”
However, while some rebels have expressed satisfaction with the concessions, some Labour MPs have stated that they will still vote against the proposals.
The government’s original aim was to save £5 billion per year by 2030 through its Universal Credit and Personal Independence Payment Bill, which would change the eligibility criteria for certain disability and sickness benefits in order to slow down the increase in claimants.
Without reforms, it is estimated that working-age health-related benefits will cost an additional £30 billion by 2029.
However, the government faced mounting discontent from around 120 of its own MPs over the proposed changes, particularly the requirement for Pip claimants to prove their need for a higher level of assistance with daily tasks such as preparing and eating food, communicating, and personal care.
Sir Keir Starmer spent Thursday reaching out to Labour MPs who supported an amendment to block the government’s flagship welfare bill.
In addition to altering who will be affected by the cuts, the government is also expected to expedite a £1 billion support plan that was originally scheduled for 2029.
Dame Meg Hillier, who led the effort to block the government’s proposals, has now stated that she will support the welfare bill, as ministers have offered “reassuring measures.”
When asked if her fellow Labour MPs will also support the bill, she stated that the news came late on Thursday evening, but she has “already received a flurry of messages from people saying this is a good step forward.”
She added that if the government had listened more to its MPs, “we might have been in a better place.”
When pressed on how the changes will be funded, Dame Meg acknowledged that it will be a challenge for the Chancellor, but added, “We cannot take money away from disabled people who have no other options.”
While Dame Meg is now supporting the bill, Nadia Whittome, Labour MP for Nottingham East, stated that she will still vote against it unless further protections for disabled people are put in place, and that she will not be alone in doing so.
“All of the MPs I’ve spoken to who signed the recent amendment – across the party, not just on the left – are sticking to their position because we understand that we’re accountable to our constituents,” she told BBC Radio 4’s Today program.
When asked multiple times on BBC Breakfast if the dispute is now over, Anna Dixon, chair of the all-party parliamentary group on carers and welfare cuts, stated that it is “very difficult” to say because the process has been “quite rushed.”
One of the rebels, Alex Sobel, the MP for Leeds Central and Headingley, also told BBC Newsnight that he is concerned the changes could create a “two-tier” system – a concern shared by other Labour backbenchers.
Tuesday’s vote will be the first opportunity for MPs to support or reject the bill.
If 83 Labour backbenchers, along with other opposition parties, attempt to block the bill, the government could still face defeat.
If it clears this hurdle, it will then face a few hours of scrutiny by all MPs the following week – instead of days or weeks in front of a committee.
Chancellor Rachel Reeves had factored the savings from the cuts into her Spring Statement – designed to help meet her economic plans – but it is now unclear how the new changes will impact this.
Ruth Curtice, head of the Resolution Foundation, stated that the government’s U-turn could cost up to £3 billion.
According to the Institute for Fiscal Studies (IFS) think tank, spending on working-age health-related benefits has increased from £36 billion to £52 billion between 2019 and 2024.
Without changes to the system, it is expected to double to £66 billion by 2029.
A Downing Street spokesperson stated that details on how the changes will be funded will be announced at the autumn Budget, but assured that there will be no permanent increase in borrowing.
This is now the third government U-turn in a month, which is a significant blow to the authority of the Prime Minister.
This follows Sir Keir’s reversal of cuts to winter fuel payments and his decision to launch an inquiry into grooming gangs, which he initially resisted.
One of the main coordinators behind the welfare amendment, who wished to remain anonymous, told the BBC that the winter fuel decision emboldened many of the rebels this time around.
They stated that MPs “all voted for winter fuel [cuts] and have taken so much criticism in our constituencies, so colleagues are thinking: why should I take that on again?”
When asked if there is a pattern to Sir Keir’s leadership, in which he gives in if “enough people kick up a fuss,” a Downing Street spokesperson responded, “I don’t accept that. This is a government that listens.”
The Tories described the concessions offered to Labour rebels as “the latest in a growing list of screeching U-turns” from the government.
Shadow Chancellor Mel Stride stated, “Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment.”
The Liberal Democrats stated that they will continue to oppose the bill, arguing that it will “cause immense damage to some of the most vulnerable.”
Sign up for our Politics Essential newsletter to stay informed about the inner workings of Westminster and beyond.