Government confirms benefits concessions ahead of second reading

The Government has confirmed concessions to opponents of its welfare reforms ahead of the Bill’s second reading tomorrow.

Liz Kendall (c) UK Parliament

Liz Kendall (c) UK Parliament

The Government has confirmed concessions to opponents of its welfare reforms ahead of the Bill's second reading tomorrow.

The updates to the Bill, which followed a rebellion by up to 120 Labour MPs, include applying changes to Personal Independence Payments (PIP) only to new applicants from November 2026.

In addition, 200,000 individuals in the Severe Conditions Criteria group will not be called for a Universal Credit (UC) reassessment.

All existing recipients of the UC health element and new customers with 12 months or less to live or who meet the Severe Conditions Criteria will see their standard allowance combined with their Limited Capability for Work Related Activity rise at least in line with inflation every year from 2026/27 to 2029/30.

The Government hopes the concessions will be enough to ensure the Bill passes into legislation but critics have warned it will create a two-tier system between new and existing PIP claimants with some calling for Labour to return to the drawing board.

Publication of the terms of reference for the first comprehensive review of the PIP today come alongside draft regulations for the new Right to Try Guarantee - enshrining protections in law for disabled people and people with health conditions who want to try work.

Work and pensions secretary Liz Kendall said: ‘We must build a welfare system that provides security for those who cannot work and the right support for those who can. Too often, disabled people feel trapped - worried that if they try to work, they could lose the support they depend on.'

‘That is why we are taking action to remove those barriers, support disabled people to live with dignity and independence, and open routes into employment for those who want to pursue it.'

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