Money Wellness

benefits

Published 24 Jun 2025

3 min read

Could ministers be about to change course on benefits reforms?

More than 100 Labour MPs are seeking changes to the government’s proposed welfare reforms.

Could ministers be about to change course on benefits reforms?
James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 24 June 2025

Ministers recently announced planned changes to the welfare system including: 

  • freezing the health element of universal credit at £97 a week until 2029-30
  • reducing the universal credit health element by £47 a week for new claimants
  • tightening eligibility criteria for personal independence payments (PIP)
  • scrapping the work capability assessment in 2028
  • reducing incapacity benefits for people under 22 

But not all MPs support the changes and some have already managed to get concessions.

For example, the government recently said that existing PIP claimants affected by the changes will get a 13-week transition period, rather than four weeks, where their payments continue.

And now, 108 MPs have signed an amendment that, if selected by speaker Sir Lindsay Hoyle and backed by enough MPs, would mean the government’s plans won’t be able to progress through parliament.

As a result, ministers may consider revising elements of the proposals before the first vote in parliament next week.

MPs who have signed the amendment, which includes 10 Labour select committee chairs, are concerned that there hasn’t been enough consultation over the planned welfare reforms and that some groups could be disproportionately affected.

Government defends planned welfare reforms

Work and pensions secretary Liz Kendall has insisted that nine out of 10 PIP claimants will continue getting their benefits after the changes come into effect and that the most vulnerable will be protected.

"Our plans are rooted in fairness - for those who need support and for taxpayers,” she said.

"They are about ensuring the welfare state survives, so there is always a safety net for those who need it."

Ms Kendall added that greater benefit spending alone is “no route to social justice”.

Instead, she argued that “the path to fairer society” is “one where everyone thrives, where people who can work get the support they need, and where we protect those who cannot”.

Why is the government overhauling the benefits system?

Ministers believe welfare costs are “spiralling at an unsustainable rate” and that the system needs to support those who can work to find employment.

According to the Department for Work and Pensions (DWP):

  • one in 10 people of working age currently claim a sickness or disability benefit
  • nearly 1 million young people aren’t in education, employment or training
  • 2.8 million aren’t in work because of long-term sickness  

The number of people claiming PIP is a particular concern to ministers, as this is expected to double this decade from 2 million to 4.3 million.

Since the pandemic, the number of PIP awards has more than doubled from 13,000 a month to 34,000 a month.

The DWP says this works out to around 1,000 people signing on to PIP every day.

James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

James has spent almost 20 years writing news articles, guides and features, with a strong focus on the legal and financial services sectors.

Published: 24 June 2025

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 24 June 2025

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