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The Government has scrambled to head off a growing rebellion on the backbenches by offering a raft of concessions to controversial welfare reforms just 24 hours before a crunch vote.
The Universal Credit and PIP Bill will face its Second Reading on Tuesday. While the new concessions are designed to soothe party tensions, it remains unclear whether they will be enough to secure victory in the Commons.
Work and Pensions Secretary Liz Kendall insisted the reforms are about “delivering a fairer, more compassionate system.”
She said: “Too often, disabled people feel trapped – worried that if they try to work, they could lose the support they depend on. That is why we are taking action to remove those barriers… and open routes into employment for those who want to pursue it.”
Here is a step-by-step guide to how ministers are changing the speed and scope of the Universal Credit (UC) and Personal Independence Payment (PIP) shake-up.
Comprehensive review of PIP ordered
Ministers have bowed to pressure by launching the first full review of the PIP assessment in over a decade. This will be led by Sir Stephen Timms, Minister for Social Security and Disability, and will be “co-produced with disabled people” and charities.
The aim is to ensure the system “reflects the realities of modern life” and addresses soaring numbers of mental health-related claims, which have tripled in recent years.
Right to try work guarantee drafted
In response to fears from claimants about losing benefits if they attempt work, the Government will enshrine in law a new Right to Try Guarantee.
This legal protection means those on disability and health benefits can test the waters of employment “without fear of reassessment”. The DWP says 37% of disabled people want to work but are deterred by the threat of losing support.
Major concessions on PIP eligibility rules
Faced with internal uproar, the Government has agreed that all existing PIP claimants will remain on the current system.
The tougher new eligibility criteria – including the requirement to score at least 4 points on a daily living activity – will apply only to new claimants from November 2026.
This delays the most controversial part of the Bill and protects those already receiving support.
Lifelong conditions group spared from reassessments
Some 200,000 people classed as having Severe Conditions – those with lifelong and irreversible illnesses – will now be exempt from reassessments for Universal Credit.
Ministers had faced criticism for creating unnecessary stress and bureaucracy for some of the most vulnerable groups.
UC payments to rise above inflation for millions
In an attempt to win over MPs worried about fairness, ministers say nearly 4 million households will benefit from above-inflation increases in UC over the next four years.
A single person aged 25+ could be £725 better off by 2029/30 – “around £250 higher than if rises had tracked inflation alone.”
Existing health claimants protected
All current recipients of the UC health element – and new claimants meeting Severe Conditions Criteria or the End-of-Life rules – will see the combined payment rate protected and increased with inflation every year to 2029/30.
UC system to be ‘rebalanced’ – with cuts for new claimants
While existing claimants are protected, the Government is pressing ahead with plans to reduce the health element of Universal Credit to just £50 per week for new claimants from April 2026.
Ministers argue this is needed to fix a system that “incentivises people to define themselves as incapable of work by paying health element recipients more than double the standard amount.”
£2.2 billion Employment Support Package brought forward
To ease the transition and support people into work, the Government is accelerating plans to boost employment services:
- £300 million will be spent over the next three years.
- Overall, £2.2 billion will go into job support and skills help by 2029.
- A new WorkWell programme, delivered with the NHS, will provide tailored health and work advice.
