PM set to announce welfare climbdown in deal with Labour rebels

The anticipated agreement between the government and Labour rebels regarding planned welfare changes is set to be announced soon. Reliable sources have disclosed to the BBC that current recipients of the Personal Independence Payment (Pip) will maintain their current benefits, along with those receiving the health component of Universal Credit. Additionally, the government is expected to expedite support aimed at assisting individuals in securing employment.

This development signifies a significant reversal by the government, which faced the risk of a defeat if it did not address the demands of more than 100 of its backbenchers. Sir Keir Starmer engaged in efforts to garner support among the 120 Labour MPs who supported an amendment aimed at halting the progression of the government’s primary welfare legislation through Parliament. In an address to the Commons, Sir Keir expressed his desire for reform to be implemented in line with Labour principles and fairness, acknowledging the widespread eagerness across party lines to address issues within the welfare system.

The proposed Universal Credit and Personal Independence Payment Bill seeks to alter eligibility criteria for specific disability and illness benefits, with the aim of achieving annual savings of £5 billion by 2030. Chancellor Rachel Reeves had integrated these cuts into her economic plans outlined in the Spring Statement in March. The impact of the new reforms on the government’s spending plans remains uncertain, particularly in light of data indicating a significant rise in spending on health-related benefits for working-age individuals. The Institute for Fiscal Studies (IFS) projects this spending to double to £66 billion by 2029 without systemic adjustments. Despite government intentions to stipulate additional proof of need for heightened assistance in various daily tasks, such as meal preparation, communication, hygiene, and dressing, Labour MPs have voiced criticisms of certain elements within the proposals

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