Benefits Bill U-turn: Labour told to axe Universal Credit reform after PIP reversal as Britons face 'hardship (0.019148936170212766)

<iframe frameborder="0" height="100%" scrolling="no" src="https://www.gbnews.com/res/scraper/embed/?video_url=https%3A%2F%2Fmm-v2.simplestream.com%2Fiframe%2Fplayer.php%3Fkey%3D3Li3Nt2Qs8Ct3Xq9Fi5Uy0Mb2Bj0Qs%26player%3DGB003%26uvid%3D52953554%26type%3Dvod%26viously_id%3D0uz-4JM7Xfs" width="100%"></iframe><br/><p>Labour is being urged to <a href="https://www.gbnews.com/money/dwp-overhaul-young-people-universal-credit-pip" target="_blank">drop proposed reform to Universal Credit</a> following this evening's benefits bill U-turn as Britons face being "pulled into hardship".</p><p>The Government's welfare legislation cleared its initial parliamentary test tonight, passing by 335 votes to 260, only after secured victory only after abandoning plans to reform Personal Independence Payment (PIP).</p><h3></h3><br/><p>The <a href="https://www.gbnews.com/politics/politics-news-latest-keir-starmer-benefit-vote-kemi-badenoch-nigel-farage" target="_blank">Universal Credit and Personal Independence Payment Bill</a> advanced through its second reading following significant last-minute concessions from ministers. </p><p>Notably, the Government completely withdrew the clause relating to PIP changes, where officials had anticipated achieving substantial savings.</p><h3></h3><br/><img alt="Universal Credit sign and Keir Starmer" class="rm-shortcode" data-rm-shortcode-id="849e1e53a4b6a162e4776dbf5d394e0e" data-rm-shortcode-name="rebelmouse-image" id="160d3" loading="lazy" src="https://www.gbnews.com/media-library/universal-credit-sign-and-keir-starmer.jpg?id=61135359&width=980"/><h3></h3><br/><div class="embed-latest"></div><p>This retreat from Labour came after sustained pressure from backbench MPs and disability rights campaigners who opposed the reforms.</p><p>Stephen Timms, the Social Security and Disability Minister, made the announcement with barely an hour remaining in the Commons debate. </p><p>He confirmed that PIP reforms, which were set to tighten the benefit's eligibility criteria, would be postponed pending a comprehensive review of the system.</p><p>The minister told MPs the review would report by autumn 2026 and would be "co-produced" with disabled people. This approach leaves open the possibility that the changes may never be implemented at all.</p><p><em><strong>Do you have a money story you’d like to share? Get in touch by emailing <a href="mailto:[email protected]" target="_blank" title="mailto:[email protected]">[email protected].</a></strong></em></p><h3></h3><br/><p>Despite securing passage of the bill, criticis note Prime Minister Keir Starmer's Government has seen its authority undermined by the need for such substantial concessions.</p><p>Thomas Lawson, the CEO of anti-poverty charity <a href="https://www.turn2us.org.uk/" target="_blank">Turn2us</a>, expressed mixed reactions to the vote's outcome. </p><p>"We are deeply disappointed that MPs have today voted for this Bill to proceed," he stated.</p><p>Whilst welcoming the Government's decision to delay PIP changes pending review, Lawson warned about the impact on Universal Credit recipients.</p><h3></h3><br/><div class="opinary-widget-embed" data-customer="gbnews" data-poll="have-you-used-a-benefits-calculator-to-c"></div> <script async="" src="//widgets.opinary.com/embed.js" type="text/javascript"></script><h3></h3><br/><div class="embed-dontmiss"></div><p>He highlighted that halving the health element would mean "people who become unwell in the years ahead are even more likely to be pulled into hardship".</p><p>Lawson praised the PIP concession as "a huge win for the disabled people, carers, families, MPs and supporters who bravely and passionately spoke out".</p><p><strong>LATEST DEVELOPMENTS:</strong></p><ul><li><a href="https://www.gbnews.com/money/benefits-bill-u-turn-pip-universal-credit-changes" target="_self">Benefits bill U-turn: What the changes mean for PIP and Universal Credit claimants</a></li><li><a href="https://www.gbnews.com/money/benefits-bill-rule-changes-poverty-welfare" target="_self">Labour's benefit rule changes to push extra 150,000 people into poverty despite U-turn</a></li><li><a href="https://www.gbnews.com/money/state-pension-labour-introduce-means-testing-welfare-costs" target="_self">State pension warning: Labour urged to introduce means testing as pensioner bill to hit £181billion</a></li></ul><h3></h3><br/><img alt="Liz Kendall" class="rm-shortcode" data-rm-shortcode-id="ee21252fa7a0b79c638ee30a5e1a4e70" data-rm-shortcode-name="rebelmouse-image" id="63f7d" loading="lazy" src="https://www.gbnews.com/media-library/liz-kendall.jpg?id=52424203&width=980"/><h3></h3><br/><p>However, he argued the Government had "now removed any doubt that its proposed cuts are not thought-through".</p><p>Charlotte Gill, head of campaigns and public affairs at the MS Society, added: “We thought last week’s so-called concessions were last minute. But these panicked 11th hour changes still don’t fix a rushed, poorly thought-out Bill.”</p><p>Jon Sparkes, chief executive of learning disability charity Mencap, said: “The last-minute change relating to the review Sir Stephen Timms is leading sounds positive and we are pleased that the Government has listened.”</p><p>He added: "Disabled people should not have to pay to fix black holes in the public finances."</p>