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What are the concessions to the welfare bill – and will MPs back it? | Politics News

The Owner Press by The Owner Press
June 27, 2025
in Business News
Reading Time: 6 mins read
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Quantity 10 has made concessions on its welfare invoice after disaster talks with Labour rebels.

Sir Keir Starmer will likely be hoping the adjustments are sufficient to keep away from a Commons defeat when the measures are put to a vote on Tuesday – however a number of MPs have mentioned they’re nonetheless not happy.

Sky Information seems at what was within the deal and whether or not it is going to be sufficient to win over critics.

Politics Dwell: Labour rebel hails ‘good deal’ after No 10 makes concessions on welfare

Modifications to PIP

In a letter to MPs, Work and Pensions Secretary Liz Kendall confirmed all current claimants of the non-public independence cost (pip) will likely be exempt from the cuts to eligibility.

It means the brand new qualifying necessities will likely be carried out from November 2026 for brand spanking new claims solely.

This can be a massive U-turn because the adjustments to pip, the principle incapacity profit in England, had brought on probably the most upset amongst MPs planning to insurgent.

Pip is cash given to folks, together with a few of whom are in work, who’ve additional care or mobility wants on account of a incapacity.

Individuals who declare it are awarded factors relying on their means to do sure actions, corresponding to washing and getting ready meals, which influences how a lot they are going to obtain.

Presently claimants want to attain a minimal of eight factors throughout a spread of duties to qualify for the day by day dwelling ingredient (there’s a mobility ingredient that’s not affected by the plans). Below the brand new guidelines folks might want to rating a minimal of 4 factors in no less than one exercise to qualify.

By limiting the adjustments to new claimants solely, it’s estimated 370,000 individuals who had been attributable to lose out will now get to maintain their profit.

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It will come at a value of £1.5bn by the tip of the parliament, in accordance with the Institute for Fiscal Research.

It isn’t clear how that will likely be funded, prompting hypothesis of tax rises on the autumn price range.

Common Credit score

The second row again entails deliberate adjustments to common credit score (UC).

The federal government had supposed to freeze the well being top-up at £97 per week throughout this parliament.

Nevertheless, all present recipients of the well being ingredient, in addition to any new candidates assembly the “extreme circumstances standards”, will now have their incomes protected in actual phrases.

The federal government will nonetheless minimize the speed to £50 for brand spanking new claimants from 2026/7, whereas elevating the usual charge of UC for jobseekers.

table visualization

Extra money for folks to seek out work

The well being top-up is for individuals who have a restricted means to work due to a incapacity or long run illness, however ministers are involved concerning the rising variety of claimants and wish to incentivise folks again into work.

Ms Kendall beforehand mentioned £1bn can be used for focused help schemes to assist folks out of inactivity and into jobs.

In her letter, she mentioned the federal government “will entrance load extra of the extra funding generated by these reforms for again to work help for sick and disabled folks”.

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Labour welfare rebel Meg Hillier says the government’s offer to row back some of its controversial welfare reforms is a "real breakthrough".

0:43

Govt makes provide to rebels on welfare reforms

Will MPs again the adjustments?

Care minister Stephen Kinnock informed Sky Information on Friday morning the adjustments are a “actually massive step in the appropriate course”.

The aim of the invoice was to shave £5bn off the welfare price range by 2030 and deal with the rising numbers of people who find themselves economically inactive. A number of MPs mentioned they agreed with the precept of reform however had been involved with the influence on disabled folks.

Initially, over 120 Labour MPs had signed a “reasoned modification” calling for the adjustments to be delayed whereas disabled folks had been consulted on.

Dame Meg Hillier, the influential chair of the Treasury choose committee who had tabled the modification, mentioned final night time that the federal government had provided a “whole lot”.

Nevertheless, it’s finally as much as particular person MPs to resolve in the event that they wish to help it.

Learn extra:
Beth Rigby analysis: Welfare bill a humiliating blow for Starmer

A number of MPs on the left of the get together have come ahead to say they will not. This contains the likes of Richard Burgon, Ian Byrne and Nadia Whittome, who’ve expressed considerations a few two-tier system.

Sky Information has spoken to different MPs who privately say they will not again the invoice. One insurgent mentioned a WhatsApp group has been set as much as announce their intentions and he believes 50 have already acknowledged their intention to vote in opposition to the invoice.

Others have informed Sky Information they’re undecided. One insurgent mentioned she has “no thought” how she’ll vote and is “ready to see the finer particulars and the way issues pan out on Monday”. One other mentioned he expects he’ll now not vote in opposition to however will make his thoughts up firmly when he has seen the total particulars.



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