Liz Kendall is set to offer new protections for the most vulnerable benefit claimants in a bid to head off the biggest Labour rebellion since the election.
The reported re-think by the Work and Pensions Secretary comes amid fears that sweeping cuts to disability payments will plunge hundreds of thousands into poverty.
The minister is said to be planning a more generous 13-week transition period for those set to lose their Personal Independence Payment (PIP), alongside legally binding safeguards for those with terminal or lifelong illnesses, as she scrambles to quell an uprising from up to 170 of her own MPs.
Labour MPs are demanding wholesale changes to the Government’s flagship £5bn welfare reform plan – with growing anger at plans to tighten eligibility for PIP and withdraw support for carers.
Charities warn the shake-up could cost 1.2 million people with disabilities up to £4,500 a year, and push an extra 250,000 into poverty by 2030.
Despite mounting criticism, Chancellor Rachel Reeves yesterday doubled down on the Government’s refusal to drop the controversial measures, saying: “No, we’re not going to be changing that.”
The backlash follows the March green paper outlining reforms to slash Britain’s ballooning welfare bill. Critics say the package unfairly targets sick and disabled people who rely on PIP – which is designed to help with daily living, not employment – to maintain a basic quality of life.
The Guardian is reporting that in a move to placate furious backbenchers, Ms Kendall will now include what she calls “non-negotiable” legal protections in the forthcoming welfare bill.
These will guarantee enhanced support for people with terminal illnesses or progressive conditions who are unable to work – including automatic access to higher rates of Universal Credit and exemption from stressful three-year reassessments.
Crucially, PIP recipients who no longer qualify under the revised rules will continue to receive payments for a 13-week “grace period”, rather than the usual four. During this time, they will also retain access to carer’s allowance and receive tailored support for health, care and employment needs.
Ms Kendall insisted the measures were rooted in personal experience. “When we set out our reforms we promised to protect those most in need, particularly those who can never work,” she told The Guardian.
“I know from my 15 years as a constituency MP how important this is. It is something I take seriously and will never compromise on.
« That is why we are putting additional protections on the face of the bill to support the most vulnerable and help people affected by the changes. These protections will be written into law – a clear sign they are non-negotiable.”
Yet it remains unclear whether the concessions will be enough.
Under the revised assessment process, claimants must score at least four points on a single daily living activity – such as preparing food or dressing – to qualify for PIP. Government figures show around 370,000 existing claimants will lose support, while 430,000 people who would have qualified in future will no longer be eligible.
Despite the cuts, ministers argue the system is unsustainable, with 1,000 people a day now applying for health-related benefits. Even after reforms, 750,000 more people are projected to be claiming PIP by the end of the Parliament.
Ms Reeves said the reforms were essential to reverse Britain’s rising tide of economic inactivity, telling the BBC: “We are the only developed country where the number of people in the labour market is lower than it was before Covid. The number of economically inactive people of working age is rising.”
She added: “Even with these changes, we will substantially be increasing the amount of money we are paying in sickness and disability benefits during the course of this parliament.”
The reforms come alongside a new “right to work” programme, also championed by Ms Kendall, which will allow claimants to return to work on a trial basis without losing benefits.
Meanwhile, Labour ministers are hoping other sweeteners – such as last week’s extension of free school meals and potential moves to lift the two-child benefit cap – will calm tensions.
