The Government has offered a further concession to limit the scale of a Labour revolt over welfare reforms.
Changes to restrict eligibility for the personal independence payment (Pip) could be delayed until after a review of the key disability benefit instead of coming into force in November 2026 as planned.
The latest concession follows a partial U-turn last week in the face of a possible defeat over the Universal Credit and Personal Independence Payment Bill.
The legislation faces its first Commons vote on Tuesday night and the 11th-hour concession on timing for the changes suggests the Labour hierarchy is still concerned about the scale of the revolt, which is set to be the largest of Sir Keir Starmer’s premiership.
Disability minister Sir Stephen Timms told MPs that the Government had listened to the concerns raised about the timing of the changes.
The climbdown will cause a major headache for Chancellor Rachel Reeves as the welfare squeeze was originally meant to save £4.8 billion a year, which was subsequently reduced to £2.3 billion when the Bill was first watered down.
Tuesday’s changes leave any future savings uncertain as the scale of the squeeze on Pip is unclear.
Sir Stephen’s intervention, which came in the middle of debate on the legislation, followed frantic behind-the-scenes negotiations involving Cabinet ministers, Sir Keir himself and wavering Labour MPs.
Some 39 Labour MPs have signed an amendment which would see the Bill fall at its first hurdle in the Commons.
A previous effort to kill the Bill had attracted more than 120 Labour supporters, but was shelved after the first partial U-turn on the legislation last week, which restricted the Pip changes to new claimants from November 2026.
That date has now been abandoned in the latest climbdown, with any changes now only coming after Sir Stephen’s review of the Pip assessment process.
Sir Stephen acknowledged “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 the Government would now “only make changes to Pip eligibility activities and descriptors following that review”, which is due to conclude in the autumn of 2026.
The concession appeared to have won round some Labour doubters.
Josh Fenton-Glynn, who was one of the 126 Labour MPs who signed the original rebel amendment to the welfare reform Bill last week, described the move as “really good news”.
He said he wanted to support the Government at “every opportunity” and was glad changes to personal independence payment eligibility would be delayed until after the Timms review.
But other Labour MPs appeared exasperated, with one telling the PA news agency that no-one “knew what they were voting on anymore”.
And rebel ringleader Rachael Maskell said she was determined to press for a vote on her “reasoned amendment” which would halt the legislation in its tracks.
“The whole Bill is now unravelling and is a complete farce,” she said.
This is an utter capitulation. Labour's welfare bill is now a TOTAL waste of time. It effectively saves £0, helps no one into work, and does NOT control spending.
— Kemi Badenoch (@KemiBadenoch) July 1, 2025
It’s pointless. They should bin it, do their homework, and come back with something serious. Starmer cannot govern. https://t.co/fJJ78lPkX0
“What it won’t do is stop the suffering of disabled people which is why we are determined to go ahead with the reasoned amendment and attempt to vote down the Bill at second reading.”
Conservative Party leader Kemi Badenoch accused ministers of “utter capitulation” and said the legislation was now “pointless”.
She said: “They should bin it, do their homework, and come back with something serious. Starmer cannot govern.”
