Government scraps key cuts to PIP in controversial welfare bill reforms

The Government has removed key cuts to Personal Independence Payment (PIP) payments for disabled people from its so-called ‘welfare bill’ as the legislation passed its second reading in the House of Commons yesterday.

The Universal Credit and Personal Independence Payment Bill had planned to make it harder to claim PIP, a benefit for people with health conditions, pointing to recent rises in the numbers of people claiming benefits.

Earlier this week 86 disability and human rights groups released a joint statement condeming the bill despite the protections for existing claimants, including Scope, Mind, the Trussell Trust, the Joseph Rowntree Foundation and the British Association of Social Workers (BASW).

“We are coming together as organisations committed to fighting poverty, providing advice, and supporting and championing the rights of disabled people, their families, and carers,” the statement read.

“We stand firmly with disabled people and their organisations in calling for the UK government to withdraw the UC & PIP Bill and to undertake genuine dialogue with disabled people to shape reforms centred on the rights and dignity that all disabled people need and deserve.”

As a result of the pressure, the Government announced that changes to PIP would only apply to new claimants from November 2026 and not those currently in receipt of support. Fearing that they would still lose the vote, Minister for Social Security and Disability, Sir Stephen Timms announced at the last minute that the government were abandoning changes to PIP until it had time to consider the conclusions of a review into benefits.

The government unveiled plans in March to reform the benefits system, proposing to restrict eligibility for PIP and to freeze the health-related component of Universal Credit.

As part of the reforms, it also pledged a £1 billion support package aimed at helping disabled people and those with long-term health conditions move into employment.

However, there was strong opposition to the Bill from a number of organisations representing disabled people, with the Government’s own estimates indicating 150,000 people could be pushed into poverty unless they found work.

Work and Pensions Secretary Liz Kendall said the combined value of Universal Credit will be in line with inflation, which she said will ensure no existing claimants will be pushed into poverty as a result.

Responding to the outcome of the vote, Dr Sarah Hughes, chief executive of Mind, said that the Government has finally started to listen to disabled people.

“While these last-minute concessions will bring a degree of relief to hundreds of thousands of disabled people, this shambolic process has broken trust. Some of the most vulnerable people in our society, including people already struggling with their mental health, have needlessly gone through turmoil.”

Dr Hughes added that the charity had seen an increase in calls to its helplines as a result of the plans.

“Meaningful consultation with disabled people is where this process should have started, and the Government’s PIP review must be an opportunity for a renewed approach to policymaking that is based on evidence and the reality of people’s lives.”

Dr Ruth Allen, Chief Executive of BASW, added that it is “fundamental that the Government now commits to genuine dialogue with disabled people to shape reforms centred on the rights and dignity that they need and deserve.”

“Disabled people across the UK have endured months of uncertainty, worry and stress because of the original proposals in this ill thought-through Welfare Bill and how it has been handled in recent weeks. They have been badly let down by government’s proposals and by the lack of co-production with people affected by proposed changes to vital support.

“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.”