Starmer ditches Pip benefit reforms in face of Labour revolt

Sir Keir Starmer was forced to abandon a key plank of his welfare reform agenda to get the legislation through its first Commons test.

In a late climbdown as MPs prepared to vote, the Government shelved plans to restrict eligibility for the personal independence payment (Pip), with any changes now only coming after a review of the benefit.

The move will cause a headache for Chancellor Rachel Reeves, who has seen a forecast £4.8 billion saving from the welfare budget whittled away through a series of concessions, leaving her to seek extra money through spending cuts, tax hikes or borrowing to balance the books.

The decision to remove the Pip changes from the Universal Credit and Personal Independence Payment Bill was announced just 90 minutes before MPs voted on Tuesday night.

The legislation cleared its first hurdle by 335 votes to 260, majority 75.

Remarkable

The decision to remove key parts of the Bill is remarkable for a Government with a working majority of 165 and after just under a year in office.

Tory leader Kemi Badenoch accused ministers of “utter capitulation” and said the legislation was now “pointless”.

She said: “They should bin it, do their homework, and come back with something serious. Starmer cannot govern.”

Earlier, a Labour rebel attempt to halt the legislation was defeated by 179 votes.

A total of 44 Labour MPs including two tellers backed the bid by rebel ringleader Rachael Maskell, who described the Bill as “unravelling” and “a complete farce”.

The only Welsh Labour MP to vote against the government was Steve Witherden (Montgomeryshire and Glyndwr).

A previous effort to kill the Bill had attracted more than 120 Labour supporters, but was dropped after the first partial U-turn on the legislation last week, which restricted the Pip changes to new claimants from November 2026.

Climbdown

That date has now been abandoned in the latest climbdown, with any changes now only coming after disability minister Sir Stephen Timms’ review of the Pip assessment process.

Sir Stephen announced the climbdown in the middle of the debate on the legislation.

He acknowledged “concerns that the changes to Pip are coming ahead of the conclusions of the review of the assessment that I will be leading”.

He said the Government would now “only make changes to Pip eligibility activities and descriptors following that review”, which is due to conclude in the autumn of 2026.

The concession came after frantic behind-the-scenes negotiations in Westminster involving the Prime Minister, his Cabinet and wavering Labour MPs.

Charlotte Gill, head of campaigns and public affairs at the MS Society, said: “We thought last week’s so-called concessions were last minute. But these panicked 11th hour changes still don’t fix a rushed, poorly thought-out Bill.”

But Jon Sparkes, chief executive of learning disability charity Mencap, said: “The last-minute change relating to the review Sir Stephen Timms is leading sounds positive and we are pleased that the Government has listened.”

He added: “Disabled people should not have to pay to fix black holes in the public finances.”

The Government’s concessions have gutted the reforms, leaving only parts of the current Bill still on the table.

Proposals to cut the health element of universal credit by almost 50% for most new claimants from April 2026 remain in place, along with an above-inflation increase in the benefit’s standard allowance.

In an earlier climbdown, Work and Pensions Secretary Liz Kendall said existing recipients of the health element of universal credit, and new claimants with the most severe conditions, would have their incomes “fully protected in real terms”.

Shambles

Responding to Welsh Labour MPs voting through the Bill, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said: “The shambles we have seen from Labour show a government that’s lost control. We’ve seen the Bill today dismembered before our eyes; this is no way to govern a country. This failed bill should be scrapped altogether.

“Welsh Labour MPs who backed the proposals to cut support for some of the most vulnerable in our country will need to explain why they have done so to the people of Wales.

“The Liberal Democrats will continue to oppose any attacks on disabled people by this Government.”

This is full list of the Labour rebels:

Diane Abbott (Hackney North and Stoke Newington), Paula Barker (Liverpool Wavertree), Lee Barron (Corby and East Northamptonshire), Lorraine Beavers (Blackpool North and Fleetwood), Olivia Blake (Sheffield Hallam), Richard Burgon (Leeds East), Ian Byrne (Liverpool West Derby), Irene Campbell (North Ayrshire and Arran), Lizzi Collinge (Morecambe and Lunesdale), Stella Creasy (Walthamstow), Peter Dowd (Bootle), Neil Duncan-Jordan (Poole), Cat Eccles (Stourbridge), Clive Efford (Eltham and Chislehurst), Mary Kelly Foy (City of Durham), Tracy Gilbert (Edinburgh North and Leith), Mary Glindon (Newcastle upon Tyne East and Wallsend), Chris Hinchliff (North East Hertfordshire), Imran Hussain (Bradford East), Terry Jermy (South West Norfolk), Kim Johnson (Liverpool Riverside), Ian Lavery (Blyth and Ashington), Brian Leishman (Alloa and Grangemouth), Emma Lewell (South Shields), Rebecca Long Bailey (Salford), Rachael Maskell (York Central), Navendu Mishra (Stockport), Grahame Morris (Easington), Margaret Mullane (Dagenham and Rainham), Simon Opher (Stroud), Kate Osborne (Jarrow and Gateshead East), Richard Quigley (Isle of Wight West), Bell Ribeiro-Addy (Clapham and Brixton Hill), Marie Rimmer (St Helens South and Whiston), Cat Smith (Lancaster and Wyre), Euan Stainbank (Falkirk), Graham Stringer (Blackley and Middleton South), Jon Trickett (Normanton and Hemsworth), Derek Twigg (Widnes and Halewood), Chris Webb (Blackpool South), Nadia Whittome (Nottingham East), Steve Witherden (Montgomeryshire and Glyndwr).

Tellers for the Ayes were Labour MPs Clive Lewis (Norwich South) and Andy McDonald (Middlesbrough and Thornaby East).