The government’s own analysis shows that even after strong criticism of these measures, ministers announced two major changes to the controversial welfare reforms, would still fall into poverty.
More than 120 Labor MPs threaten to rebel against the government for their universal credit and independent payment bill, which is scheduled to vote in the House of Commons on Tuesday.
The legislation will still introduce two key changes to universal credit and individual independent payments (PIP). However, adjustments have been made to ensure that existing claimants have greater protection than originally promised, while 150,000 figures are down 250,000 from the 250,000 figures faced by the original proposal.
Here’s everything you need to know:
What does the PIP claimant need to know
Central cost-cutting measures remain a tightening of the qualifications granted to PIPs. Currently, the proceeds are currently being claimed by 3.7 million people and are designed to assist with additional costs related to health or disability.
Under this change, there will be no “daily life” aspects of the current claimants qualify for benefits. This is because, despite their assessments, they did not get four points in any single category.
Work and Pension Minister Liz Kendall has written to members of Congress, outlining changes to the bill (Jacob King/PA) (PA Wire)
Initially, Labour has committed to providing transitional protection to any claimant who has been reassessed and ineligible due to the changes. This means they guaranteed the same payment rate in 13 weeks.
Ms. Kendall has now confirmed that all existing claimants will not be subject to the new standards. Although they will still be re-evaluated – occurring on average every three years, they will not need four points in a single category.
This means that anyone who thinks they are eligible for PIP can apply for it as soon as possible. The changes will take effect at least until November 2026. This can be done on gov.uk.
This means that the Resolution Foundation research found that around 370,000 claimants are expected to be protected on average £4,500.
What does a universal credit health claimant need to know
Another key change in the bill is that changes in general credit rates, standard interest rates rise, while health-related interest rates fall.
These plans will increase the standard universal credit allowance for new and existing claims in April 2026. This will be a weekly increase of £7 to £106.
But at the same time, the payment rate for health-related factors of General Credit will be frozen at £105 per week until 2029/30. However, Ms. Kendall has confirmed that the income of existing claimants will be protected in real time, meaning that at least it should rise with inflation.
This also applies to any new claimant who meets the critical condition criteria.
Protesters gather in London to demonstrate against Labor’s proposed layoffs, March 2025 (Reuters)
The Resolution Foundation estimates that this will “isolate 2.25 million people from losses between £250 and £500 a year.”
However, the government has not yet raised its plan to increase the general credit health factor for new claimants to £54 per week, which is nearly half.
Charities and campaigners criticized the government’s concessions to the bill and threatened to establish a “two-layer” system. This is because people who currently claim PIP and universal credit health will benefit from more generous rules and rates after they take effect with new applicants.
Ms Kendall said the cuts in benefits would save taxpayers £2.5 billion — instead of the £4.8 billion mentioned earlier — raising new questions about how Prime Minister Rachel Reeves balances the books.
She told MPs she knew there were “real concerns” about the government’s welfare reform, adding: “We have listened carefully, so we are making positive changes.”
However, James Taylor from the scope of the Disability Equal Charity said: “People with disabilities have not been consulted on these changes and we do not know the impact of these recommendations on health and employment opportunities.
“If you are disabled, whether you are working or not. Our latest research shows that these costs increase on average £15,000 per year, giving families with disabilities the same standard of living.”
