Streeting confident about welfare vote amid criticism of ‘two-tier’ Pip plans

The Government’s original welfare package had restricted eligibility for Pip, but in a climbdown to stave off a backbench rebellion, the changes will now only apply to new applicants.

Transition

Mr Streeting said this was not unusual for such a transition.

“When things change and evolve as you bring in new systems, it does change sometimes from group to group, student finance being an example,” he told the BBC’s Sunday With Laura Kuenssberg programme.

He said “we’ve got to listen” when asked if further concessions could be made on Pip.

Unite general secretary Sharon Graham has called for the Government to start from scratch on the Bill and said the latest plans were “divisive and sinister”.

“Creating a two-tier system where younger disabled people and those who become disabled in the future will be disadvantaged and denied access to work and education, is morally wrong,” she said.

Unethical

Disabled Labour MP Olivia Blake said the proposed changes had been “plucked from the air”.

“This could form an unethical two-tier system that treats two people with the exact same injury or illness differently,” she told The Guardian.

The Health Secretary told Sky News’s Sunday Morning With Trevor Phillips that the changes “have put us in a much better position”.

“As a result of the changes, it means anyone watching this morning who’s in receipt of personal independence payments now has the peace of mind of knowing that their situation is protected,” he said.

Labour MP Louise Haigh meanwhile said she planned to back the Welfare Bill next week but needed to see the full detail of the new plans on Monday.

Reset

The former Cabinet minister also said it was a moment for the Government to “reset”.

“I think this is a moment and an opportunity to reset the Government’s relationship with the British public and to move forward, to adopt a different approach to our economic policy and our political strategy,” she told the BBC.

On Saturday, the Prime Minister told the Welsh Labour conference the “broken” welfare system must be fixed “in a Labour way”.

The original plans restricted eligibility for Pip and cut the health-related element of universal credit

Existing recipients were to be given a 13-week phase-out period of financial support in an earlier move that was seen as a bid to head off opposition.

Now, the changes to Pip will be implemented in November 2026 and apply to new claimants only, while all existing recipients of the health element of universal credit will have their incomes protected in real terms.

The concessions on Pip alone protect some 370,000 people currently receiving the allowance who were to lose out after reassessment.

Ministers had hoped the reforms would get more people back into work and save up to £5 billion a year, but the concessions left Chancellor Rachel Reeves needing to find money elsewhere and point to possible tax rises in the autumn.