The government had on Monday already made a multibillion-pound climbdown which would mean no existing claimants of the payment would be subject to new, stricter eligibility rules. A freeze to the health-related component of the Universal Credit welfare payment would also be reversed — a U-turn the government admitted would cost the Treasury £2.5 billion.
During an emotive House of Commons debate Work and Pensions Secretary Liz Kendall had urged MPs to back the legislation, insisting plans to protect existing claimants while ensuring new PIP awards are focused on those with higher needs in future “strikes the right and fair balance going forward.”
But disabled Labour MP Marie Tidball grabbed the attention of the debating chamber when she told MPs she would vote against the bill “with a heavy, broken heart” and spoke of her past vow to create a Britain “which treats disabled people with dignity and respect.”
The move will raise fresh questions about Starmer’s political judgement after he last week dismissed concerns from MPs as “noises off” as the rebellion gained ground.
It further raises the prospect of tax rises in the autumn if Chancellor Reeves is to stick to her self-imposed rule to be on course to balance her budget by 2029/30.
Timms was unable to tell MPs how much the scaled back bill would now save.
“This is an utter capitulation,” said Conservative Leader Kemi Badenoch on X.
“Labour’s welfare bill is now a TOTAL waste of time. It effectively saves £0, helps no one into work, and does NOT control spending. It’s pointless. They should bin it, do their homework, and come back with something serious. Starmer cannot govern.”