DR UK Handbook Editor on 'Completely Unfair' Government Bill Concessions
Keir Starmer promised on 26 June that he had made ‘massive concessions’ to the large number of Labour MPs who were threatening to vote against the welfare bill on Tuesday 1 July. That evening Liz Kendall , the Work and Pensions Secretary, wrote a letter to MPs to explain these concessions.
In this letter, she clarified that the new, tighter, personal independence payment (PIP) rules would apply to new claims only (from November 2026). This is a very modest concession: the bill already provided such protection to existing claims – but not when they were up for review. Otherwise, the new four-point rule – which will consign hundreds of thousands of Disabled people to poverty – remains exactly the same.
Secondly, she promised that all existing claimants of the universal credit health-related support (and any new claimant meeting the new ‘severe conditions’ criteria) would have their incomes fully protected in real terms. Another minor concession. The bill already provided such protection, although the payment levels would be eroded by a four-year freeze. The freeze will now no longer apply. The hefty cut to health-related support, around 50%, will remain in place for new claimants. A dramatic rise in poverty will be inevitable.
Consequently, we will have a two- tier system, where new claimants are far less likely to receive support, and the support they receive will be set at a much lower level. This is completely unfair.
Liz Kendall said ‘We believe those who can work, should, and those who cannot, should be protected.’ But PIP is paid whether or not you are in work, and, once the bill has fully come into effect, so will the universal credit health-related support.
It would be charitable to call what is on offer ‘concessions’, and ‘massive’ they certainly are not. You can call a hamster a horse if you want, but it doesn’t stop it being a hamster.