Government wins vote on watered-down welfare bill after concessions
The government has won a vote on its benefits bill by 75 votes, but only after offering last-minute concessions to Labour rebels.
Ministers had already watered down their plans once by reversing some cuts to universal credit and protecting current claimants of personal independence payment (Pip) from stricter eligibility rules.
However, some Labour MPs were still concerned the new criteria for claiming Pip would come into force before the recommendations of a review could be implemented.
Fearing a humiliating defeat, the government announced a further U-turn, saying it would not change Pip rules until it had time to consider the review’s conclusions.
The 11th hour changes leave the government’s Universal Credit and Personal Independence Payment Bill gutted of its most significant measures.
The move undermines Sir Keir’s authority, which has been called into question by a series of U-turns recently, and that of Work and Pensions Secretary Liz Kendall.
It also puts pressure on Chancellor Rachel Reeves’ spending plans, as potential savings of around £5bn will now be delayed or lost entirely.
Helen Miller, incoming director of the Institute for Fiscal Studies think tank, said the figures would “intensify the speculation over the summer about which taxes may rise and by how much”.
She said it raised questions about the government’s credibility adding: “It doesn’t bode well for those hoping this government will grasp the nettle and address the deeper, structural challenges facing the UK public finances.”
Speaking after the vote, Kendall said: “I wish we had got to this point in a different way.”
She said there were “lessons to learn from the process” but defended the bill arguing it put in place “really important reforms” to help those who can, back into work.
Labour MP Chris Curtis, who supported the measures from the outset, defended the government’s concessions. He told BBC Radio 4’s Today programme: “I don’t think it’s weakness to look at the evidence to reconsider your position, and to end up in a better place.”
The 11th hour changes leave the government’s Universal Credit and Personal Independence Payment Bill gutted of its most significant measures.
The move undermines Sir Keir’s authority, which has been called into question by a series of U-turns recently, and that of Work and Pensions Secretary Liz Kendall.
It also puts pressure on Chancellor Rachel Reeves’ spending plans, as potential savings of around £5bn will now be delayed or lost entirely.
Helen Miller, incoming director of the Institute for Fiscal Studies think tank, said the figures would “intensify the speculation over the summer about which taxes may rise and by how much”.
She said it raised questions about the government’s credibility adding: “It doesn’t bode well for those hoping this government will grasp the nettle and address the deeper, structural challenges facing the UK public finances.”
Speaking after the vote, Kendall said: “I wish we had got to this point in a different way.”
She said there were “lessons to learn from the process” but defended the bill arguing it put in place “really important reforms” to help those who can, back into work.
Labour MP Chris Curtis, who supported the measures from the outset, defended the government’s concessions. He told BBC Radio 4’s Today programme: “I don’t think it’s weakness to look at the evidence to reconsider your position, and to end up in a better place.”