Starmer retreats on key element of PIP reform legislation

The Herald Scotland

07-07-2025

The Bill passed its second reading by 335 votes to 260, with Labour's majority of 165 slashed to just 75 - the biggest rebellion of Sir Keir's time in office.
Scottish Labour MPs Irene Campbell, Tracy Gilbert, Brian Leishman, Euan Stainbank were among the 49 backbench rebels who voted against the legislation.
The four also backed an unsuccessful amendment to halt the legislation.
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The decision to effectively scrap the central element of the legislation that ministers have spent weeks defending as necessary came after Labour whips realised defeat was possible.
Details of the eleventh-hour concessions were announced in the Commons just 90 minutes before MPs were due to vote.
It was the second u-turn on the welfare reforms in a matter of days.
Last week, 126 Labour MPs backed an amendment that would have effectively derailed the Bill.
No 10 saw that off by promising to apply the new stricter regime for PIP only to new claimants from November 2026.
However, that promise — made last Thursday — led to confusion and claims of a two-tier system, where the level of benefit changed depending on someone's date of birth.
The latest concession abandons that plan entirely. The Government will now wait for the conclusions of a review into how people are assessed for PIP, led by Sir Stephen Timms, the Minister for Social Security and Disability.
That review will be "co-produced" with disabled people.
Currently, the assessment judges an applicant's level of illness or disability by 'scoring' them on their ability to perform certain tasks.
The higher the total score, the more disabled they are considered to be — which affects whether they receive a payment and, if so, at what level.
Under the Government's initial proposals, new applicants would have had to score four points in one category, as well as reaching eight points across all categories.
Previously, they needed to score two points in each of four categories.
There were fears this would mean, for example, that people unable to wash or dress below the waist could lose their benefits.
Sir Stephen told MPs: 'We have heard those concerns, and that is why I can announce that we are going to remove the clause five from the bill at committee, that we will move straight to the wider review, sometimes referred to as the Timms review, and only make changes to PIP eligibility activities and descriptors following that review.
'The Government is committed to concluding the review by the autumn of next year.'
Rebel ringleader Rachael Maskell said the Bill was now 'a complete farce'.
The chaos in the Commons comes just days before the first anniversary of Labour's victory in last year's general election.
Work and Pensions Secretary Liz Kendall insisted the party was '100%' behind the Prime Minister, but acknowledged there were 'lessons to be learned' after the rebellion.
'Welfare reform is always really difficult, perhaps especially for Labour governments.
'It's something we care passionately about.'
But she added that MPs had shown significant support for 'the principle of the welfare state' that those who can work should do so, while those who were unable should be protected.
SNP Westminster Leader, Stephen Flynn said Labour owed an apology to disabled people.
"Their daily lives have been subjected to a cruel Westminster political game.
"The final u-turn they deserve tonight is an apology from the Prime Minister and for this shambolic bill to be scrapped.
"The only option left for the Labour Party is to stop their attack on disabled people, remove the threat of a two-tier disability system and for them to finally scrap this bill."
Conservative leader Kemi Badenoch accused the Government of 'utter capitulation'.
She said: 'They should bin it, do their homework, and come back with something serious. Starmer cannot govern.'
The legislation was unveiled by Work and Pensions Secretary Liz Kendall as part of a package aimed at saving up to £4.8 billion a year.
This was reduced to £2.3bn when the Bill was first watered down last week.
It is not yet clear what difference the latest changes will make, but the proposed tightening of eligibility was the main cost-saving measure in the package.
The IFS suggested removing Clause 5 could make no savings and even cost £100 million.
PIP has mostly been devolved to the Scottish Government, which began replacing it with Adult Disability Payment (ADP) in 2022. While the SNP had ruled out copying the reforms, any change in PIP spending would have had an impact on the block grant.
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Charlotte Gill, head of campaigns and public affairs at the MS Society, said the changes did not go far enough: 'We thought last week's so-called concessions were last minute. But these panicked 11th hour changes still don't fix a rushed, poorly thought-out Bill.'
Jon Sparkes, chief executive of learning disability charity Mencap, welcomed the concession: 'The last-minute change relating to the review Sir Stephen Timms is leading sounds positive and we are pleased that the Government has listened.'
He added: 'Disabled people should not have to pay to fix black holes in the public finances.'