Labour's dramatic DWP benefit climbdown explained in full - see how it affects you

Labour's DWP chief last night announced a dramatic climbdown on controversial benefit cuts as rebel MPs prepared to torpedo the reforms.

Liz Kendall announced a series of concessions in a bid to avoid a humiliating defeat in the Commons. It came after 126 backbench MPs signed an amendment that would scupper the Government's plans.

In a letter to MPs late last night, the Work and Pensions Secretary announced that everyone who currently claims personal independence payments (PIP) would continue to do so. It follows widespread anxiety among disabled people that a vital financial lifeline would be cut off.

Ms Kendall admitted that the changes had been a "source of uncertainty and anxiety". The Mirror has spoken to numerous people who described the harrowing impact the proposed changes had on them.

She also told MPs that the Government would ensure all existing recipients of the Universal Credit health element - as well as any new claimant who meet "severe conditions" criteria - will have their incomes protected.

Scroll down to read her letter in full. Here we look at what's changed, and the implications of the climbdown.

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So what's now happening with PIP?

Ms Kendall confirmed that people who currently claim PIP will not be affected by the changes.

Instead the Government's reforms, which will limit the number of people who are eligible, will not come into effect until November 2026. And crucially, she announced, the criteria will affect new claims only.

Those who make a new claim after that time will need to undertake an assessment to determine what tasks they struggling with, and how it affects day-to-day life. This is completed using a points system.

At the moment claimants need between eight and 11 points to get the standard daily living or mobility part of PIP. A higher rate is awarded to those who score 12 points or more. However, under changes, people will need a minimum of four points in at least one activity to qualify for the daily living part of PIP.

This means that claimants will need to show greater difficulty when completing some tasks, such as washing, eating and getting dressed, to be eligible to claim PIP.

Ok, and how about Universal Credit?

Alongside the changes to PIP eligibility, the Government is also seeking to limit access to the health element of Universal Credit. Ms Kendall told disgruntled MPs that all those who claim it, and new claimants who meet "severe conditions" criteria, will not lose out.

She said these people will "have their incomes fully protected in real terms".

Did Ms Kendall announce any other changes?

Yes, alongside the two concessions outlined above, she also said there will be a ministerial review of the PIP assessment. This will look at the way claims are decided, and will be led by Sir Stephen Timms, the Minister for Social Security and Disability.

In her letter - which you can read in full lower down - she said the review will be carried out in "coproduction with disabled people, the organisations that represent them".

What has the Government said?

A No10 spokesman said this morning: “We have listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the system.

“This package will preserve the social security system for those who need it by putting it on a sustainable footing, provide dignity for those unable to work, supports those who can and reduce anxiety for those currently in the system.

“Our reforms are underpinned by Labour values and our determination to deliver the change the country voted for last year.”

So will it be accepted by rebels?

That remains to be seen, but it looks like some MPs are won over.

Dame Meg Hillier, who put forward the "reasoned amendment" that highlighted the level of opposition, branded it a "good deal" and said vulnerable people will be protected. But others were not convinced, dismissing it as "just a backroom deal".

Dame Meg said: "This is a good deal. It is massive changes to ensure the most vulnerable people are protected... and, crucially, involving disabled people themselves in the design of future benefit changes."

However left-wing MP Rachel Maskell said: "As the Government is seeking to reform the system, they should protect all disabled people until they have completed their co-produced consultation and co-produced implementation.

"I cannot vote for something that will have such a significant impact ... as disabled people are not involved, it is just a backroom deal."

What happens next?

On Tuesday MPs will vote on the Universal Credit and Personal Independence Payment Bill. Mr Starmer and Deputy PM Angela Rayner repeatedly insisted this week that the vote would not be pulled, despite the looming prospect of a damaging defeat.

At the moment that vote is still going to go ahead, and ministers will be frantically making calls over the weekend to try and win over those who might be wavering.

How much will the concessions cost?

The Government was seeking to save £5billion a year on the welfare bill, insisting the current system is not serving anyone. According to the Institute for Fiscal Studies (IFS), the changes announced overnight will slash £1.5billion a year from that.

It leaves Chancellor Rachel Reeves with a headache to find extra savings or tax increases in her Budget in the autumn. Asked this morning how it would be paid for, health minister Stephen Kinnock told Times Radio: "The full details around what we are laying out, what I've summarised really today, is going to be laid out in Parliament, and then the Chancellor will set out the budget in the autumn the whole of the fiscal position and this will be an important part of that.

"But forgive me, I'm not in a position to set those figures out now. I think that is very much the Chancellor's job as we move into the budget in the autumn."

Liz Kendall's letter to MPs in full

Dear colleague,

We have always said we are determined to reform the social security system so it is fair, provides dignity and respect for those unable to work, supports those who can, and is sustainable so it is there for generations to come.

The broken system we inherited from the Tories fails all of those tests. These important reforms are rooted in Labour values, and we want to get them right.

We have listened to colleagues who support the principle of reform but are worried about the impact of the pace of change on those already supported by the system. As a result we will make two changes to strengthen the Bill.

Firstly, we recognise the proposed changes have been a source of uncertainty and anxiety. Therefore, we will ensure that all of those currently receiving PIP will stay within the current system. The new eligibility requirements will be implemented from November 2026 for new claims only.

Secondly, we will adjust the pathway of Universal Credit payment rates to make sure all existing recipients of the UC health element – and any new claimant meeting the severe conditions criteria – have their incomes fully protected in real terms.

Colleagues rightly want to ensure that disabled people and those with ill health are at the heart of our reforms. We will take forward a ministerial review of the PIP assessment, led by the Minister for Social Security and Disability, to ensure the benefit is fair and fit for the future.

At the heart of this review will be coproduction with disabled people, the organisations that represent them, and MPs so their views and voices are heard. The review will then report to me as Work and Pensions Secretary. These commitments sit alongside our raising of the standard rate of the Universal Credit – the biggest real-terms permanent increase of any benefit since the 1980s – the protection of the incomes of the most vulnerable who will no longer be reassessed and the introduction of “right to try”.

Our reform principles remain; to target funding for those most in need and make sure the system is sustainable for the future to support generations to come. We believe those who can work, should, and those who cannot, should be protected.

We will front load more of the additional funding generated by these reforms for back to work support for sick and disabled people.

Taken together it is a fair package that will preserve the social security system for those who need it by putting it on a sustainable footing, support people back into work, protect those who cannot work and reduce anxiety for those currently in the system.

Thank you to colleagues for engaging with us on these important reforms to social security.

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