Benefit reforms scrape through parliament

Labour’s controversial welfare bill has passed a House of Commons vote after eleventh-hour concessions to rebels.

There were chaotic scenes as MPs voted through the reforms by 335 votes to 260 – a slim majority of 75.

Keir Starmer succeeded in quelling dissent after an amendment calling for the bill to be dropped was defeated.

He had to make major adjustments to stave off rebellion, including:

• pausing the requirement that claimants score four points in a single PIP category
• rescheduling a review to ensure it completes before proposed changes are introduced
• the exemption of existing PIP claimants from the reforms.

MPs opposed to the bill were declaring it a shambles minutes before the vote, after a last-minute concession saw the ditching of Clause Five, containing the central reform that would have helped balance the chancellor's books this autumn.

Stephen Timms, social security and disability minister, announced the removal of the four-point rule that would have led to 250,000 fewer claimants of PIP - rising to 800,000 by 2030 - and a change to the timing of the Timms Review to ensure consultation with disability groups takes place first.

He said the concerns of rebel MPs, not least the number of people pushed into poverty, had been noted.

"We have heard those concerns," he said, "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… and only make changes to PIP eligibility, activities and descriptors following that review."

In late June, the government revised its estimates of how many people would enter relative poverty from 250,000 to 150,000 after protecting existing claimants of PIP from the proposed reforms.

Campaigners now believe the four-point rule, central to raising £2.5 billion for Rachel Reeves' autumn statement, is unlikely to be resurrected, with the focus for cuts falling on the health element of Universal Credit, and new severe conditions criteria.

A spokesperson for advice and advocacy group Benefits and Work said: "The four-point PIP rule is effectively dead. 

“Instead, the Timms Review will decide what happens to PIP. And if, as Labour have promised, the review is genuinely coproduced with disabled people there is very little chance of such a rule ever happening.”

Concerns

But John McDonnell, the Labour MP currently suspended for voting against the government on the two-child benefit cap, says it is unclear whether the findings of the review will be incorporated.

He said: “The government concession on setting up the review of PIP conditions has been rendered meaningless by its refusal to guarantee to put the review recommendations in primary legislation.”

If the government instead opts to put changes in secondary legislation, MPs would not be able to amend or vote on them. 

On the evening of the vote, with multiple concessions still being announced, Bell Ribeiro-Addy, Labour MP for Clapham and Brixton Hill, said: "This legislation will have life-altering consequences for disabled people. 

"Briefing last-minute changes without time to debate, scrutinise and consider the effects shows desperation to rush it through and disregard for those impacted."

The Benefits and Work spokesperson added: “As things stand, an enormous amount of distress has been caused to millions of disabled claimants, only to end up with a bill that has entirely abandoned its primary aim.

“For Timms, Kendall and Reeves, however brave a face they put on it, today has been an enormous humiliation.

“For campaigners, facing a government with a massive majority and an extraordinary degree of arrogance, it has been a remarkable – though by no means total – victory."

Reaction

BASW criticised the government's handling of the bill for putting disabled people through "months of uncertainty, worry and stress" and called for further amendments to be co-produced.

Chief executive Ruth Allen said: “The government’s climbdown on changes to PIP is welcome, but these ill thought-through proposals need much further amendment to make them fit for purpose and fair. And the proposed deep cuts to Universal Credit included in the bill are extremely worrying. 

"Reforming our welfare system through focusing more on helping people back to work could be a laudable aim.

"But current proposals will worsen, not improve, living standards and quality of life; are likely to backfire as worsened health and social outcomes will further exclude people from being able to work and participate fully in society; and are creating political turmoil which could have been avoided."

Allen added: "It’s fundamental that the government now commits to genuine dialogue with disabled people to shape reforms centred on the rights and dignity that they need and deserve. 

"If this bill cannot adequately protect the most vulnerable in our society from hardship or prevent demand on social work services from increasing, then the government must withdraw it.” 

Charlotte Gill, head of campaigns and public affairs at the MS Society, said: “The government has been forced to listen to disabled people at the eleventh hour. 

“While we’re relieved that the government are dropping some of their most catastrophic plans for PIP, and committing to a review before any changes go ahead, we still believe this bill risks causing harm to disabled people – pushing through cuts to those on Universal Credit who are unable to work is unfair and cruel.”

James Taylor, executive director at disability equality charity Scope, added: “It’s right to consult and engage with disabled people before making sweeping changes to PIP. 

“We now need cast-iron confirmation that future reforms will be genuinely co-produced with disabled people, as promised.”

The bill will now go through close scrutiny at committee stage, before the report stage where further amendments can be proposed.

It will then go through a third reading before moving to the House of Lords.