A proposed benefit cut for future out-of-work claimants has cleared the Commons after Labour ministers saw off a backbench rebellion.
The Universal Credit Bill cleared the Commons at third reading, after it received MPs’ backing by 336 votes to 242, majority 94.
“If you can work, you should,” social security minister Sir Stephen Timms told MPs before they voted on the welfare reforms.
“If you need help into work, the Government should provide it, and those who can’t work must be able to live with dignity.
“Those are the principles underpinning what we’re doing.”
Work and pensions ministers faced calls to walk away from their universal credit (UC) proposals at the 11th hour, after they shelved plans to reform the separate personal independence payment (Pip) benefit and vowed to only bring in changes following a review.
“When this Bill started its life, the Government was advocating for cuts to Pip claimants and UC health claimants now and in the future. They conceded that now wasn’t right, and it was only the future,” Labour MP for Hartlepool Jonathan Brash said.
“Then they conceded it shouldn’t be Pip claimants in the future, leaving only UC health claimants in the future. Does (Sir Stephen) understand the anxiety and confusion this has caused people in the disabled community, and would it not be better to pause and wait for the review and do it properly?”
Sir Stephen replied: “No, because reform is urgently needed. We were elected to deliver change and that is what we must do.
“And it’s particularly scandalous that the system gives up on young people in such enormous numbers – nearly a million not in employment, education or training.”
The minister said the Government wanted to “get on and tackle the disability employment gap” and added the Bill “addresses the severe work disincentives in universal credit, it protects those we don’t ever expect to work from universal credit reassessment”.
As part of the Bill, the basic universal credit standard allowance will rise at least in line with inflation until 2029/30.
But the Government has proposed freezing the “limited capability for work” (LCW) part of the benefit until 2030, which a group of 37 Labour rebels including Mr Brash opposed in a vote.
The move was ultimately approved by 335 votes to 135, majority 200.
New claimants who sign up for the “limited capability for work and work-related activity” payment would receive a lower rate than existing claimants after April 2026, unless they meet a set of severe conditions criteria or are terminally ill, which the same rebels also opposed.
Rachael Maskell, the Labour MP for York Central who was among them, had earlier said: “No matter what spin, to pass the Bill tonight, this will leave such a stain on our great party, founded on values of equality and justice.”
She warned that making changes to universal credit before a wider look at reform was putting “the cart before the horse, the vote before the review”, and branded the Government’s decision-making an “omnishambles”.
Ms Maskell pressed her own amendment to a division, which she lost by 334 votes to 149, majority 185.
It would have demanded that out-of-work benefit claimants with a “fluctuating medical condition” who slip out of and then back into their eligibility criteria either side of the changes would receive their existing – not the lower – rate.
Marie Tidball said that during the review of Pip, which Sir Stephen was tasked with leading, “the voices of disabled people must be front and centre”.
She proposed putting a series of legal conditions on the so-called Timms review, including that disabled people should be actively involved in the process.
The Labour MP for Penistone and Stocksbridge did not move her amendment to a vote, on the basis Sir Stephen could offer “further assurances that there will be sufficient link between the Timms review recommendations and subsequent legislation on Pip to ensure accountability and that the voices of disabled people are heard”.
The minister said he could give her that assurance, and added that “the outcome of the review will be central to the legislation that follows”.
Lib Dem MP Christine Jardine lost her role in the party’s front bench as Scotland spokesperson for voting against a Tory-led amendment to the Bill.
A party spokesperson said the official position was to abstain, as “a vote against was effectively a vote to implement this shambolic Bill in full”.
They added: “Instead Liberal Democrats voted to oppose the welfare Bill altogether. Christine decided to take a different view and therefore is no longer on the front bench.”
Ms Jardine was joined by eight other Lib Dem MPs in opposing the amendment, none of who hold senior roles in the party.
A total 47 Labour MPs voted against the Bill at third reading including Mr Brash, Ms Maskell, Mother of the House and Hackney North and Stoke Newington MP Diane Abbott, and former minister Dawn Butler.
The Bill will undergo further scrutiny in the Lords at a later date.
