In an attempt to mitigate potential backlash from her party, Work and Pensions Secretary Liz Kendall is revising forthcoming welfare reforms that include significant cuts to disability benefits, which are projected to save the government approximately £5 billion per year by 2030. Facing a potential rebellion from Labour party MPs, Kendall is taking steps to assure that those who will be adversely affected by these cuts receive support during the transition period. Her commitment aims to stave off dissent within the party, especially regarding the plans surrounding the Personal Independence Payment (PIP), which serves as a crucial financial support for many disabled individuals.
Kendall’s reform bill intends to alter the eligibility criteria for PIP, making it more challenging for individuals with less severe disabilities to qualify for this essential financial aid. Reports suggest that those who lose their PIP will now receive a transitional support period extending to 13 weeks, a significant increase from the previous four-week allowance. This revision represents an effort by the government to ease the anticipated financial strain on those impacted by the reform, a direct response to the criticisms emanating from various Labour MPs concerned about the proposals.
In tandem with these changes, Carer’s Allowance payments will remain in effect during the 13-week transition period, terminating only when PIP is discontinued altogether. Meanwhile, individuals who possess severe health conditions are to be excluded from reassessment, ensuring that they will still receive supplemental income support through a universal credit payment. One notable initiative accompanying the welfare reform bill is a new scheme designed to empower disabled individuals with the opportunity to engage in work without jeopardizing their benefit status, a potentially vital change for many struggling to find employment.
Kendall has emphasized that these additions to the legislation are “non-negotiable” protections aimed at safeguarding the most vulnerable members of society—specifically emphasizing her dedication to supporting those who may never be able to work again. Citing her extensive experience as a constituency MP and the commitments made earlier, she describes the integration of these protections as crucial to the welfare reform’s integrity. “This is something I take seriously and will never compromise on,” Kendall stated, underscoring her resolve to deliver meaningful support alongside the more stringent measures in the bill.
Amid these adjustments, discontent is brewing within the Labour party, with several MPs expressing their disapproval of the proposed cuts to PIP and negotiations regarding universal credit. The government’s impact assessment warns that these changes could potentially lead an additional 250,000 individuals, including 50,000 children, into relative poverty. In reaction to these findings, multiple Labour MPs have conveyed their willingness to revolt against the primary legislation if satisfactory alterations are not made to the proposed cuts.
Neil Duncan-Jordan, a Labour MP, articulated his skepticism towards the transitional protections offered, labeling them as merely postponing poverty rather than providing a resolution. Other parliamentarians echoed similar frustrations, questioning the rationale behind the indefinite withdrawal of vital assistance once the transition period concludes. With tensions palpable amongst the members, it remains to be seen how Kendall’s reassurances will translate into support for the legislation.
Chancellor Rachel Reeves, however, firmly maintained that the government intends to forge ahead with the proposed cuts, asserting that the welfare system needs urgent reforms to operate effectively. Despite expecting 3.2 million families to suffer financial losses, averaging around £1,720 per year, the administration believes that their long-term strategies to invest in assisting the long-term sick and disabled into employment will help offset these losses.
The overarching plan is for the welfare reforms to take effect by November 2026, limiting immediate disruptions as the government seeks to manage its spending on health and disability benefits, projected to reach an unsustainable £70 billion annually by the end of the decade. Thus, while adjustments to support provisions have been made, the Labour party continues to grapple with internal divisions as they approach the upcoming vote on these contentious reforms.