Fri, 27 Jun 2025

Fri, 27 Jun 2025 Starmer U-turns on benefits cuts after Labour backlash

Cuts to some disability benefits will only hit future claimants, not those already on it.
Government Concessions on Welfare Reforms
* The government has agreed to major concessions on its planned welfare reforms, making significant changes to its Personal Independence Payment (PIP) and Universal Credit plans.
* Claimants of PIP will continue to receive their current benefits, as will recipients of the health element of Universal Credit.
* Planned cuts will only affect future claimants, rather than those already receiving benefits.
* The government made the concessions after facing the prospect of defeat in Parliament if it did not accommodate the demands of over 100 Labour backbenchers.
* Work and Pensions Secretary Liz Kendall said the bill was now "in a good place" and expressed hope that it would be passed by Parliament.
* Rebel MPs welcomed the concessions, but some Labour MPs have stated that they will still vote against the proposals due to concerns about protections for disabled people.
* The government's original plan aimed to save £5bn a year by 2030 through welfare reforms, but the concessions could cost up to £3bn according to some estimates.
* Chancellor Rachel Reeves had factored savings from the cuts into her Spring Statement, but it is now unclear how the changes will affect these plans.
  >>