Welfare Reform Bill Passes Second Reading: What It Means for Claimants

Yesterday marked a critical moment in the ongoing battle to protect disabled people's rights as MPs debated the controversial Universal Credit and Personal Independence Payment Bill in the House of Commons. After more than five hours of intense discussion, the government narrowly avoided defeat at Second Reading, but only after making a significant concession on its proposed changes to Personal Independence Payment (PIP).

The Bill has been met with widespread opposition from disabled people, grassroots campaigners, charities, and over 120 Labour MPs. It threatens to tighten eligibility for PIP, delay promised employment support until the end of the decade, and deepen poverty for thousands of people with long-term health conditions. Many were particularly alarmed that the proposals were not developed in consultation with disabled people or carers.

Rachael Maskell MP, Labour MP for York Central and former Shadow Secretary of State for Employment Rights, tabled a Reasoned Amendment. Her amendment urged MPs to block the Bill, citing three main concerns: that the provisions were not co-produced with disabled people or carers, that most of the employment support funding will not be available until the end of the decade, and that the Bill is being pushed forward before the government has concluded two major reviews. These reviews include the Minister for Social Security and Disability's review of the PIP assessment and Sir Charlie Mayfield's independent review into how employers and government can better support disabled people in work.

During the debate, DWP Minister Sir Stephen Timms announced a major concession. In response to concerns from MPs across the House, he confirmed that Clause 5 of the Bill, which proposed changes to PIP eligibility and a new four-point rule, will be removed at the Committee stage. He stated that no changes to PIP eligibility, activities, or descriptors will be made until the conclusion of the wider review, which is now expected to be reported in autumn 2026.

This means that the previous concession, which protects existing PIP and Universal Credit claimants from changes to eligibility criteria and payment rates, will likely remain in place until 2028. However, from November 2026, new claimants of Universal Credit who are found to have Limited Capability for Work and Work Related Activity (LCWRA) will face reduced support, as the government intends to lower the additional element paid to this group. This shift will have a devastating impact on people who become seriously ill or disabled after the reforms come into force.

Following the concession, the Reasoned Amendment was defeated by a vote of 328 to 149. The Bill was then passed at Second Reading by 335 votes to 260. It will now proceed to its final stage in the Commons, the Third Reading, on Wednesday, 9 July 2025.

We would like to sincerely thank MPs Abtisam Mohamed (Labour, Sheffield Central), Olivia Blake (Labour, Sheffield Hallam), and Marie Tidball (Labour, Penistone and Stocksbridge) for voting against the Bill and advocating for the rights and dignity of disabled people in our communities. Their ongoing support is highly valued by our members and individuals with disabilities across the region.

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