MPs have voted in favour of the government’s controversial welfare reform bill after ministers offered last-minute concessions to Labour rebels.
The bill was passed by 335 votes in favour to 260 against.
Sir Keir Starmer was forced to abandon a key plank of his welfare reform agenda to get the legislation through its first Commons test.
In a late climbdown as MPs prepared to vote, the Government shelved plans to restrict eligibility for the personal independence payment (Pip), with any changes now only coming after a review of the benefit.
The move will cause a headache for Chancellor Rachel Reeves, who has seen a forecast £4.8 billion saving from the welfare budget whittled away through a series of concessions, leaving her to seek extra money through spending cuts, tax hikes or borrowing to balance the books.
The decision to remove the Pip changes from the Universal Credit and Personal Independence Payment Bill was announced just 90 minutes before MPs voted on Tuesday night.
The concession followed a partial U-turn last week in the face of a possible defeat of the Universal Credit and Personal Independence Payment Bill.
Ahead of the vote, Disability Minister Sir Stephen Timms said: "(Labour MP Andrew Pakes) and others across the House during this debate 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.
"We have heard those concerns, and that is why I can announce that we are going to remove the clause five from the Bill at committee, that we will move straight to the wider review, sometimes referred to as the Timms review, and only make changes to Pip eligibility activities and descriptors following that review.
"The Government is committed to concluding the review by the autumn of next year."
Work and Pensions Secretary Liz Kendall insisted the Labour Party was "100%" behind the Prime Minister, but acknowledged there were "lessons to be learned" after the rebellion.
She also appeared to express regret over the handling of the issue, saying: "I wish we had got to this point in a different way."
The decision to remove key parts of the Bill is remarkable for a Government with a working majority of 165 and after just under a year in office.
Tory leader Kemi Badenoch accused ministers of "utter capitulation" and said the legislation was now "pointless".
To see off the threat of rebellion, the Government last week softened the impact of its changes to protect some 370,000 existing Pip claimants who had been set to lose out following reassessment.
Reacting to the vote, mayor of London Sadiq Khan said:“I’ve had serious concerns about the impact of the Government’s welfare reforms on hundreds of thousands of disabled and vulnerable Londoners.
“I’m pleased that the Government has started to listen and take on board what disability groups, campaigners and others have been saying about the damaging impact of this bill.
“It’s important that ministers look again at changing eligibility for PIP. Disabled Londoners rely upon this vital safety net.
“I have always said that more must be done to support those who are able to work to be able to do so. The Government must now be true to their word and engage meaningfully with disabled groups and charities about any proposed changes to welfare eligibility. The concerns of disabled people, who have been frightened and anxious since these plans were first announced, mustn’t be treated as an afterthought, but be central to how reforms are designed.”
Ahead of the debate, some Labour 39 backbenchers signed an amendment rejecting the legislation.
