The Bill was passed by 335 votes to 260 but with 49 MPs Labour MPs voting against and 18 abstaining, the vote has undermined the Prime Minister's authority and brought questions over the futures of both chancellor Rachel Reeves and work and pensions secretary Liz Kendall.
While the original Bill was intended to save £5bn a year by 2030, economists warned the last-minute concessions, which include delaying personal independence payments until after November 2026, will deliver no savings by then.
Conservatives' leader Kemi Badenoch said the Bill was ‘now a total waste of time'.
Speaking during the debate, Badenoch said: ‘A fundamental and serious programme to reform our welfare system is required and this Bill is not it.'
Posting on X, shadow work and pensions secretary Helen Whately, said: ‘Only a Labour Government could try to spend less and end up spending more. But I take no pleasure in their incompetence. The country still has to pay for it.'
Liberal Democrat leader Ed Davey said: ‘This is no way to run a country. The Government should scrap this failed Bill altogether and work cross-party to actually bring down the welfare bill by getting people into work.'