Social Care News and Features

The government has shelved planned cuts to the number of people receiving personal independence payment (PIP) pending a review of the benefit, in a last-minute concession to help it win a key vote on its welfare reform bill.

MPs approved the Universal Credit and Personal Independence Payment Bill, in principle, by 330 votes to 265 today, after ministers promised to strip the legislation of any changes to PIP.

The government had planned to tighten eligibility for the daily living component of the benefit, which is designed to help disabled adults meet the additional costs of their disability.

Under the plan, only those who scored four or more points (out of a possible 6-12) on at least one of 10 activities would be eligible, so long as they met the existing criteria of scoring at least eight points, for the standard rate of the benefit, or 12 points, for the enhanced rate, in total.

800,000 due to lose out on benefit

The measure, due to come into force in November 2026, would have resulted in an estimated 390,000 existing claimants and 430,000 potential recipients losing out on an average £4,500 a year by 2030.

However, the measure, along with provisions in the bill to freeze the health component of universal credit (UC) – paid to those assessed as having limited capability for work or work-related activity – for existing claimants and halve it for new recipients generated widespread opposition from backbench Labour MPs.

Over 120 signed an amendment in opposition to the bill last week, signalling that the government would have lost today’s vote on the so-called second reading of the legislation, killing it off altogether.

Initial climbdown to protect existing claimants

In an initial climbdown last week, ministers pledged to increase the rate of the health component of UC in line with inflation for existing recipients up to 2029-30, while not applying the four-point rule to current claimants of PIP.

They also said that an upcoming review of the PIP assessment process, by social security and disability minister Stephen Timms, would be co-produced with disabled people and organisations representing them,

But while this brought round some MPs, others, along with disabled people’s organisations, heavily criticised the PIP plan for generating a two-tier system, with those who became disabled after November 2026 losing out on payments that would be made to people with equivalent impairments whose onset came earlier.

Critics also pointed to the fact that the changes to eligibility criteria were coming ahead of the Timms review, and that any resulting changes could result in a third category of eligibility for the benefit.

PIP changes dropped from legislation

Amid lingering concerns that the government may lose the vote, Timms told the House of Commons that ministers would remove the PIP clause from the bill entirely, with any changes to eligibility predicated on the outcome of his review, which will report by the autumn of next year.

“[MPs]have raised concerns that the changes to PIP are coming ahead of the conclusions of the review of the assessment that I will be leading,” he said. £We have heard those concerns, and that is why I can announce that we are going to remove clause 5 from the bill in committee [the next stage of the bill, when MPs debate legislation in detail].

“We will move straight to the wider review…and only make changes to PIP eligibility activities and descriptors following that review.”

This means that the only substantive changes in the legislation are the halving in the value of the health component of UC for new recipients and above-inflation increases in the standard UC allowance, from 2026-27. With the latter measure costing the government money, planned annual savings of about £5bn a year by 2029-30 have disappeared.

‘Never underestimate us’, says disabled people’s organisation

In response to the news, Disability Rights UK, which has campaigned vigorously against the bill with other disabled people’s organisations, said: “Make no mistakes: this floundering from the government is because of the steadfast work of disabled campaigners and our allies across the country making it known this bill is unworkable.

“They thought they could push this disaster bill through quietly – never underestimate us!”

As well as safeguarding 800,000 people from losing out on PIP – at least for now – the concessions also protect  an estimated 150,000 carers who would have gone without carer’s allowance or the carer’s element of UC on the grounds that these were tied to the person they cared for being in receipt of personal independence payment.

Carers ‘will be hugely relieved’

Carers UK chief executive Helen Walker said the government had made the “right decision” by delaying any changes to PIP until after the Timms review had reported, given that “legislating for a system that would be under review would have been entirely in the wrong order”.

“Unpaid carers will be hugely relieved that the government has recognised the harmful impact the proposed changes to PIP could have on whole families,” she added.

“Moving forward, the review must act quickly to involve and listen to unpaid carers, to understand their needs and ensure that nobody loses their crucial entitlements. This is a real opportunity to get engagement right for unpaid carers, fully consider the implications of any changes to PIP on them and their entitlement to carer’s allowance.”

Disabled people ‘badly let down’ – BASW

For the British Association of Social Workers, chief executive Ruth Allen said that disabled people had been “badly let down” by the government’s proposals and the “lack of co-production” with those affected by the proposed cuts.

“The government’s climbdown on changes to PIP  is welcome, but these ill-thought proposals need much further amendment to make them fit for purpose and fair. And the proposed deep cuts to universal credit included in the bill are extremely worrying.

“Reforming our welfare system through focusing more on helping people back to work could be a laudable aim but current proposals will worsen not improve living standards and quality of life, are likely to backfire as worsened health and social outcomes will further exclude people from being able to work and participate fully in society, and are creating political turmoil which could have been avoided.”

She urged the government to commit to “genuine dialogue with disabled people to shape reforms centred on the rights and dignity that they need and deserve”.

The committee stage of the bill, which will involve the whole House of Commons, is due to take place next week.