Government in talks with MPs on welfare concessions

The government is in discussions with Labour MPs over possible changes to its proposed welfare reforms.

Earlier this year, ministers announced planned changes to the welfare system, including tightening eligibility criteria for personal independence payments (PIP).

Under the new system, people will have to score a minimum of four points in at least one activity to qualify for the daily living element of PIP.

The government has also proposed:

• 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
• scrapping the work capability assessment in 2028
• reducing incapacity benefits for people under 22 

But not all MPs support the changes and are putting pressure on the government to change course.

Concessions possible before vote on Tuesday

Prime minister Sir Keir Starmer has now confirmed that the government is willing to look at concessions.

“I recognise there is a consensus across the house on the urgent need for reform of our welfare system,” he said.

“The British people deserve protection and dignity when they are unable to work and support into work when they can.

“I know colleagues across the house are eager to start fixing that, and so am I, and that all colleagues want to get this right, and so do I. 

“We want to see reform implemented with Labour values of fairness.”

Sir Keir added that this conversation will “continue in the coming days” ahead of a vote in parliament on Tuesday.

More than 100 Labour MPs have already signed an amendment to the welfare bill 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.

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 reforms and that some groups could be disproportionately affected.

Why is the government overhauling the benefits system?

Ministers want to reduce the welfare budget by £5bn by 2030, as they believe costs are currently “spiralling at an unsustainable rate”.

At the same time, the government wants to ensure “robust protections” are in place to support the most vulnerable and severely disabled.

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

• one in 10 people of working age currently claim a sickness or disability benefit
• nearly one 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 two 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.