Government makes concessions to Labour rebels over welfare reforms

The government has made an offer to rebel Labour MPs over its controversial welfare reforms.

More than 120 Labour MPs were poised to vote against the Universal Credit and Personal Independence Payment (PIP) Bill on Tuesday. The changes come after a ring-around by cabinet ministers failed to bring rebels on side.

Politics latest: Government to make offer to rebels The bill was intended to restrict eligibility for the PIP - the main disability payment in England - and limit the sickness-related element of universal credit, to help shave £5bn off the welfare budget by 2030. 'We have listened' A spokesperson for Downing Street said: "We have listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the system.

"This package will preserve the social security system for those who need it by putting it on a sustainable footing, provide dignity for those unable to work, supports those who can and reduce anxiety for those currently in the system." Liz Kendall, the welfare secretary, said in a letter to MPs there would be two changes to the bill, including ensuring that all of those currently receiving PIP "will stay within the current system". "The new eligibility requirements will be implemented from November 2026 for new claims only," Ms Kendall said.

"Secondly, we will adjust the pathway of Universal Credit payment rates to make sure all existing recipients of the UC health element - and any new claimant meeting the severe conditions criteria - have their incomes fully protected in real terms." A "reasoned amendment" on the welfare bill was tabled by Treasury select committee chairwoman Dame Meg Hillier, who had argued that disabled people have not been properly consulted and further scrutiny of the changes is needed. But she said the government have offered a "good deal".

She said: "It is massive changes to ensure the most vulnerable people are protected… and, crucially, involving disabled people themselves in the design of future benefit changes." Sky News political editor Beth Rigby was earlier on Thursday told that existing PIP claimants will be able to keep their payments, meaning 370,000 people will not lose out. The Resolution Foundation think tank said the changes to PIP and UC are "welcome.