Welfare reforms: What concessions has the Government made?

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11 hours ago

Last-minute concessions to the Government's controversial welfare reforms have been welcomed by some campaigners but described as not good enough by others.
Here, the PA news agency takes a look at what the changes are and how Labour MPs and disability groups have reacted.
– What had the Government originally planned?
In March, reforms to the welfare system – aimed at encouraging more people off sickness benefits and into work – were announced.
The Government said the changes, including restricting access to the main disability benefit known as Pip (personal independence payment) and the sickness-related element of universal credit (UC), were expected to make welfare savings of £4.8 billion by 2029-30.
With around 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year', the Government argued the current situation was unsustainable.
An impact assessment published alongside the Bill included estimates that changes to Pip entitlement rules would see about 800,000 people lose out, with an average loss of £4,500 per year.
Changes to UC were expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year.
Overall, as a result of the changes, it was estimated some 250,000 more people, including 50,000 children, across Great Britain were likely to fall into relative poverty after housing costs by the end of the decade.
– What concessions have been made?
In a late-night letter to MPs, Work and Pensions Secretary Liz Kendall conceded two changes she said would 'strengthen the Bill'.
In recognition of the 'uncertainty and anxiety' caused by the proposed changes, she said all current Pip recipients would keep their benefits, saying only new claims from November 2026 will come under the tightened eligibility requirements.
An impact assessment had stated that 370,000 current recipients were set to lose Pip entitlement across England and Wales.
The Institute for Fiscal Studies (IFS) said the change will also indirectly benefit around 50,000 carers who look after someone on Pip, ensuring they keep their carer's allowance to the value of around £4,340 per year.
Ms Kendall also vowed all those currently receiving the UC health element, as well as new claimants meeting the severe conditions criteria, will have their incomes 'fully protected in real terms'.
The Resolution Foundation said this will protect some 2.25 million people from a loss of between £250 and £500 per year.
The Work and Pensions Secretary has also promised a review of the Pip assessment, led by social security and disability minister Sir Stephen Timms, which will have input from disabled people 'to ensure the benefit is fair and fit for the future'.
– What are disability groups saying?
Mikey Erhardt, from Disability Rights UK, accused the Government of 'playing politics with our lives', insisting the Bill must still be pulled.
He said the changes will mean 'a benefits system where future generations of disabled people receive less support than disabled people today' and added that, in making the original announcement of cuts, the Government had 'prioritised balancing its books over improving the lives of disabled citizens'.
Mr Erhardt added: 'Despite seemingly rowing back on some of the worst aspects of its plans, the Government is still attempting to slash billions of pounds from a system that doesn't provide enough support as it stands.'
The MS Society said the Government was simply 'kicking the can down the road and delaying an inevitable disaster', and urged MPs 'not to be swayed by these last-ditch attempts to force through a harmful Bill with supposed concessions'.
Food bank network Trussell welcomed the 'significant' concessions but said the proposals 'still present a bleak future for future claimants and still risk placing the Government's commitments to end the need for emergency food and tackle poverty in serious jeopardy'.
Similarly, national disability charity Sense said the changes are 'significant and positive, yet fall short of a fair deal for disabled people', while Inclusion London branded the Bill a 'rationing' and argued there is 'no moral or economic case for balancing the books on the backs of disabled people'.
– What are Labour MPs saying?
Dame Meg Hillier, one of the leading rebel voices, described the concessions as 'a good deal' involving 'massive changes' to protect vulnerable people and involve disabled people in the design of future reforms.
She said: 'It's encouraging that we have reached what I believe is a workable compromise that will protect disabled people and support people back into work while ensuring the welfare system can be meaningfully reformed.'
Health minister Stephen Kinnock said he is confident the welfare reforms – being brought under the Universal Credit and Personal Independence Payment Bill – will pass a vote in the Commons on Tuesday in the wake of the concessions.
But some Labour MPs are still not satisfied, with Nadia Whittome saying the concessions are 'nowhere near good enough', vowing to still vote against the Bill unless 'serious' proposals are made to 'protect the dignity of disabled people'.
Speaking to the Today programme on BBC Radio 4, she said MPs she had spoken to 'are sticking to their position because we understand that we are answerable to our constituents'.
Ms Whittome added: 'If the Government doesn't pull the Bill, doesn't consult properly with disabled people and come back to MPs with a serious proposal that protects the dignity of disabled people, I will vote against and I will be far from the only one.'
– What will the changes cost and save?
The Resolution Foundation has estimated that the concessions will cost between £2.6 billion and £3.2 billion by the end of the decade.
The originally expected savings of £4.8 billion are now reduced by more than half, the think tank said.
The IFS estimated a cost of around £3.0 billion relative to the Government's previous plans and savings of around £2.5 billion by 2029/30.