Government expected to unveil welfare Bill concessions after talks with rebels

South Wales Guardian

4 hours ago

Number 10 had been locked in crisis talks with backbenchers after some 126 MPs within the party signed an amendment that would halt the legislation in its tracks.
On Thursday night, sources said a deal was being thrashed out between rebels and the Government as it seeks to head off the prospect of the Prime Minister's first Commons defeat in a crunch vote next week.
The Government's original package restricted eligibility for the personal independence payment (Pip), the main disability payment in England, and limited the sickness-related element of universal credit.
Existing claimants were to be given a 13-week, phase-out period of financial support in an earlier move that was seen as a bid to head off opposition by aiming to soften the impact of the changes.
However, concessions offered by the Government to save the Bill from defeat are understood to include a commitment that those currently receiving Pip will continue to get the allowance.
This would protect some 370,000 existing claimants who were expected to lose out following reassessment.
Ministers had hoped the reforms would get more people back into work and save up to £5 billion a year, but fresh changes such as these would leave Chancellor Rachel Reeves needing to find money elsewhere.
Rebels had also been calling for ministers to row back on a freeze in the health element of universal credit, which was expected to lead to a £450 real decline in support for some 2.2 million existing claimants.
It is understood that the Government has agreed to avoid such a reduction in support, as well as committing to a future consultation that would involve taking the views of disabled people about policy into account.
The Universal Credit and Personal Independence Payment Bill has its second reading on Tuesday, the first opportunity for MPs to support or reject it.
If the legislation clears its first hurdle, it will then face a few hours' examination by all MPs the following week – rather than days or weeks in front of a committee tasked with looking at the Bill.
The Government had earlier said it was listening to suggestions to improve the legislation amid concerns about the swift timetable of the Bill.
The so-called 'reasoned amendment' tabled by Treasury select committee chairwoman Dame Meg Hillier had argued that disabled people have not been properly consulted and further scrutiny of the changes is needed.
While the expected concessions look set to have reassured some of those who had been leading the rebellion, other MPs remain opposed.
Speaking to the PA news agency, Rachel Maskell said: 'As the Government is seeking to reform the system they should protect all disabled people until they have completed their co-produced consultation and co-produced implementation.
'I cannot vote for something that will have such a significant impact … as disabled people are not involved, it is just a backroom deal.'
One MP said that ministers would need to 'go back to the drawing board' to make the Bill acceptable.
Another said they expected the legislation would get through second reading if the Government conceded the key sticking points relating to existing Pip claimants, the health element of universal credit and a policy consultation.
'It would need to be in the Bill, not just a commitment,' they said.
Speaking in the Commons on Wednesday, Sir Keir told MPs he wanted the reforms to reflect 'Labour values of fairness' and that discussions about the changes would continue over the coming days.
He insisted there was 'consensus across the House on the urgent need for reform' of the 'broken' welfare system.
'I know colleagues across the House are eager to start fixing that, and so am I, and that all colleagues want to get this right, and so do I,' he said.
'We want to see reform implemented with Labour values of fairness.
'That conversation will continue in the coming days, so we can begin making change together on Tuesday.'
There was mixed reaction among charities to the prospect of concessions. Learning disability charity Mencap said the news would be a 'huge relief to thousands of people living in fear of what the future holds'.
'It is the right thing to do and sends a clear message – cutting disability benefits is not a fair way to mend the black hole in the public purse,' director of strategy Jackie O'Sullivan said.
But the MS Society urged rebels to hold firm and block the Bill, insisting any Government offer to water down the reforms would amount to 'kicking the can down the road and delaying an inevitable disaster'.
Head of campaigns at the charity, Charlotte Gill, said: 'We urge MPs not to be swayed by these last ditch attempts to force through a harmful Bill with supposed concessions.
'The only way to avoid a catastrophe today and in the future is to stop the cuts altogether by halting the Bill in its tracks.'
The Tories described concessions as 'the latest in a growing list of screeching U-turns' from the Government.
Shadow chancellor Mel Stride said: 'Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment.
'Labour's welfare chaos will cost hardworking taxpayers.
'We can't afford Labour.'