Labour rebels offered major last-minute concession on welfare cut

Written by David Fletcher 03 Jul 2025
Labour rebels offered major last-minute concession on welfare cut

Labour’s welfare reform bill was plunged into turmoil after the government dropped plans to tighten eligibility for PIP, one of its core cost-saving measures. Facing fierce backlash and the threat of a major rebellion, Disability minister Sir Stephen Timms announced that changes to PIP would be delayed pending a full review, co-produced with disabled people. The last-minute concession has caused confusion among MPs, leaving uncertainty over the bill’s financial viability. Despite earlier compromises, numerous Labour MPs remain opposed, warning the reforms could deepen poverty and harm disabled people. Emotional speeches in Parliament underscored divisions, with some MPs moved to tears as they denounced the bill as unjust. Critics argue the concessions feel rushed and insufficient, while government ministers insist reforms are vital to sustain the welfare system. Poverty impact assessments indicate that even with changes, around 150,000 more people could be pushed into poverty by 2030. The fate of the bill remains uncertain as further votes loom and disquiet grows within Labour ranks.

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