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Government confirms welfare climbdown in deal with rebels Government confirms welfare climbdown in deal with rebels
(about 1 hour later)
The government has confirmed it will make major concessions to rebels in its own party over its planned benefits reforms.The government has confirmed it will make major concessions to rebels in its own party over its planned benefits reforms.
Work and Pensions Secretary Liz Kendall told Labour MPs that claimants of the Personal Independence Payment (Pip) will continue to receive what they currently get, as will recipients of the health element of Universal Credit. Instead, planned cuts will only hit future claimants. Work and Pensions Secretary Liz Kendall told Labour MPs that claimants of the personal independence payment (Pip) will continue to receive what they currently get, as will recipients of the health element of universal credit. Instead, planned cuts will only hit future claimants.
The government made the climbdown after facing the prospect of defeat in the Commons if it failed to accommodate the demands of more than 100 backbenchers.The government made the climbdown after facing the prospect of defeat in the Commons if it failed to accommodate the demands of more than 100 backbenchers.
A No 10 spokesperson said it had listened to MPs "who support the principle of reform but are worried about the pace of change". Stephen Kinnock, the minister for care, said it had been "a positive and constructive process" with "a clear agreement" reached.
"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," they added. Follow updates on this story
The government hoped to save £5bn a year by 2030 with its welfare bill, while slowing the increase in people claiming benefits. Working-age health-related benefits are estimated to cost an extra £30bn by 2029 without reforms. Chris Mason: This is the most awkward of Labour's U-turn hat-trick
But the government faced growing discontent from around 120 of its own MPs over the changes. He told BBC Breakfast that the government had struck "the right balance" between protecting the vulnerable and reforming a "broken system", and said he was confident the reforms would now pass in Parliament.
But while the rebels told the BBC their colleagues are happy with the concessions - meaning the bill is now likely to pass - some Labour MPs have said they will still vote against the proposals.
The government originally hoped to save £5bn a year by 2030 with its Universal Credit and Personal Independence Payment Bill - which would change who could qualify for certain disability and sickness benefits - aiming to slow the rise in claimants.
Working-age health-related benefits are estimated to cost an extra £30bn by 2029 without reforms.
But the government faced growing discontent from around 120 of its own MPs over the changes, who criticised proposals such as a requirement for Pip claimants to prove they need a higher degree of assistance with tasks such as preparing and eating food, communicating, washing and getting dressed.
Sir Keir Starmer spent Thursday making calls to shore up support among Labour MPs who backed an amendment to stop the government's flagship welfare bill, ahead of a Commons vote on Tuesday.Sir Keir Starmer spent Thursday making calls to shore up support among Labour MPs who backed an amendment to stop the government's flagship welfare bill, ahead of a Commons vote on Tuesday.
Speaking in the Commons earlier, Sir Keir said he wanted to "see reform implemented with Labour values and fairness". Sir Keir earlier told the Commons he wanted to "see reform implemented with Labour values and fairness".
As well as changing who will be affected by the cuts, ministers are also expected to fast-track a £1bn support plan originally scheduled for 2029.As well as changing who will be affected by the cuts, ministers are also expected to fast-track a £1bn support plan originally scheduled for 2029.
Dame Meg Hillier, who had led the effort to block changes to disability benefits, said she would now support the government's welfare bill as "it is a good step forward". Dame Meg Hillier, who led the effort to block changes to disability benefits, said she would now support the government's welfare bill as "it is a good step forward".
There had been a "big change since last week", she said, which would "ensure the most vulnerable people are protected".There had been a "big change since last week", she said, which would "ensure the most vulnerable people are protected".
Dame Meg said that she was pleased that the changes would mean "involving disabled people themselves in the future design" of benefits.Dame Meg said that she was pleased that the changes would mean "involving disabled people themselves in the future design" of benefits.
Broadly speaking, the rebels have told the BBC their colleagues are happy with the concessions, meaning the bill is now likely to pass. But Nadia Whittome, Labour MP for Nottingham East, said she would still be voting against the bill unless disabled people received further protections - and that she would be "far from the only one".
But Peter Lamb, Labour MP for Crawley, wrote on social media that he would still not support the bill - calling the changes "insufficient" and accusing ministers of ignoring better options. "All of the MPs I've spoken to who signed the recent amendment - across the party, not just on the left - are sticking to their position because we understand that we're answerable to our constituents," she told BBC Radio 4's Today programme.
The Universal Credit and Personal Independence Payment Bill would change who could qualify for certain disability and sickness benefits. Peter Lamb, Labour MP for Crawley, has also indicated he will not support the revised bill.
Chancellor Rachel Reeves had factored these cuts into her Spring Statement - designed to help meet her economic plans - but it is now unclear how the fresh changes will affect these. Asked several times on BBC Breakfast whether the row was over, Anna Dixon, chair of the all-party parliamentary group on carers and welfare cuts, said it was "very difficult" to say because the process had been "all quite rushed".
Working-age health-related benefit spending has increased from £36bn to £52bn in the five years between 2019 and 2024, according to the Institute for Fiscal Studies (IFS) think tank. Tuesday's vote is the first opportunity for MPs to support or reject the bill.
It is expected to double to £66bn by 2029, without changes to the system. If it clears this hurdle, it will then face a few hours' examination by all MPs the following week - rather than days or weeks in front of a committee.
But Labour MPs have criticised elements of government proposals, including plans to require Pip claimants to prove they need a higher degree of assistance with tasks such as preparing and eating food, communicating, washing and getting dressed. Chancellor Rachel Reeves had factored the welfare cuts into her Spring Statement - designed to help meet her economic plans - but it is now unclear how the fresh changes will affect these.
The bill has its second reading on Tuesday, the first opportunity for MPs to support or reject it. Working-age health-related benefit spending has increased from £36bn to £52bn between 2019 and 2024, according to the Institute for Fiscal Studies (IFS) think tank.
If the legislation clears this hurdle, it will then face a few hours' examination by all MPs the following week - rather than days or weeks in front of a committee. It is expected to double to £66bn by 2029 without changes to the system.
This is now the third government U-turn in a month - a major blow to the prime minister's authority.This is now the third government U-turn in a month - a major blow to the prime minister's authority.
It follows on from Sir Keir reversing cuts to winter fuel payments, and ordering a grooming gangs inquiry he initially resisted. It follows on from Sir Keir reversing cuts to winter fuel payments and ordering a grooming gangs inquiry he initially resisted.
One of the main co-ordinators behind the welfare amendment, who did not wish to be named, told the BBC the winter fuel decision had emboldened many of the rebels this time.One of the main co-ordinators behind the welfare amendment, who did not wish to be named, told the BBC the winter fuel decision had emboldened many of the rebels this time.
They told the BBC that MPs "all voted for winter fuel [cuts] and have taken so much grief in our constituencies, so colleagues think: why should I take that on again?"They told the BBC that MPs "all voted for winter fuel [cuts] and have taken so much grief in our constituencies, so colleagues think: why should I take that on again?"
The Tories described the concessions understood to have been offered to Labour rebels as "the latest in a growing list of screeching U-turns" from the government.The Tories described the concessions understood to have been offered to Labour rebels as "the latest in a growing list of screeching U-turns" from the government.
Shadow chancellor Mel Stride said: "Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment."Shadow chancellor Mel Stride said: "Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment."
Natalie Amber, an actor and disability rights campaigner, who receives Pip but still stands to lose it next year, described the reported change to the government's proposals as "disingenuous" on BBC Newsnight. One of the rebels, Alex Sobel, the MP for Leeds Central and Headingley, also told BBC Newsnight he was concerned the changes could create a "two-tier" system - a concern echoed by other Labour backbenchers.
Actor and disability rights campaigner Natalie Amber told BBC Newsnight that losing her Pip would have a "massive impact" Challenged on this, Kinnock said ministers were reforming a "complex system" in a "staggered way".
The government were "looking at saving their own reputation", she added.
One of the rebels, Alex Sobel, the MP for Leeds Central and Headingley, also told the programme he was concerned the changes could create a "two-tier" system.
It is understood that plans for the amendment began when Work and Pensions Secretary Liz Kendall offered a partial olive branch to rebels by expanding the transition period for anyone losing Pip from four to 13 weeks.It is understood that plans for the amendment began when Work and Pensions Secretary Liz Kendall offered a partial olive branch to rebels by expanding the transition period for anyone losing Pip from four to 13 weeks.
A No 10 spokesperson said: "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."
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