Sharon Cyrus
Labour has revised its stance on cutting PIP (Personal Independence Payments) for individuals with less severe disabilities, resulting in a significant shift in its welfare policy.
This change will ensure that 370,000 people, who were previously expected to lose their PIP support, will now continue receiving these payments.
The decision follows intense negotiations between Labour and its backbenchers, leading to a shift in the party’s approach to welfare reform.
Background to the Change
The Government’s reversal on PIP cuts came after crisis talks with Labour’s rebellious MPs. The situation had reached a critical point when 126 MPs within the party signed an amendment that threatened to block the welfare reform legislation.
This significant move put Keir Starmer, Labour’s leader, at risk of losing a crucial vote in the House of Commons. In response to this internal backlash, the Government agreed to amend its plans.
Government’s Commitment to Protecting Payments
Liz Kendall, the Secretary of State for Work and Pensions, reassured MPs that the Government would take steps to protect all current recipients of the Universal Credit health element. Additionally, those who meet the “severe conditions” criteria and any new claimants falling under this category will have their incomes fully safeguarded.
Initially, the Government had proposed a 13-week phase-out period for current claimants, which was intended to soften the blow of the planned cuts. However, the new agreement ensures that these claimants will not lose their support, effectively preserving their payments in full.
Future Reforms: What This Means
While this concession brings relief for many, the broader reforms are still on the horizon. The proposed changes to PIP eligibility will not be implemented until November 2026 and will only impact new claimants. To qualify for the daily living or mobility parts of PIP, claimants currently need to score between 8 and 11 points. A higher rate is granted to those who score 12 points or more.
However, under the new plans, claimants will be required to achieve at least four points in one activity to qualify for the daily living component of PIP. This change means claimants will need to demonstrate a more significant level of impairment in completing everyday tasks such as eating, washing, and dressing in order to receive PIP.
Limitations on Universal Credit Health Element
In addition to changes in PIP eligibility, the Government is also seeking to reduce access to the health element of Universal Credit. Ms. Kendall reassured concerned MPs that those receiving the health element, along with new claimants who meet the “severe conditions” criteria, will continue to have their incomes fully protected in real terms.
The Government’s recent policy shift marks a victory for Labour MPs and current PIP recipients who were facing cuts. While the broader reforms are still set to take effect in 2026, the changes will provide greater security for those already receiving support, and future claimants will need to meet stricter criteria to qualify for financial aid.
FAQs
How many people will be affected by the PIP changes?
Approximately 370,000 people who were expected to lose their PIP support will now keep their payments.
When will the new reforms take effect?
The new PIP eligibility reforms will be implemented in November 2026 and will only affect new claimants.
What will the changes to the health element of Universal Credit mean?
The health element of Universal Credit will be more limited, but current recipients and new claimants meeting “severe conditions” will have their incomes fully protected.