Ministers Retreat on Personal Independence Payment Cuts After Mounting Pressure
The UK government has made a sudden policy U-turn, ditching proposals to slash Personal Independence Payment (PIP) benefits for current recipients. This reversal lands after a coordinated outcry from Labour MPs, with more than 120 threatening to derail the flagship Universal Credit and PIP Bill during its first crucial parliamentary test. Without the change of course, about 2 million disabled people faced annual losses between £3,800 and £5,700—figures that had many families fearing the worst.
Labour's campaign against the PIP cuts quieted immediate fears, spotlighting the bill's earlier flaws. Echoing concerns from disability rights advocates, critics slammed the lack of proper consultation with those directly affected. There wasn’t even a government-led assessment on how jobs, social care, or daily living would be hit. Government projections had warned the original proposals could push an extra 250,000 people below the relative poverty line, pressing the urgency for a rethink.
Work and Pensions Secretary Liz Kendall delivered a letter to Labour MPs laying out the government's change of heart. She promised those on PIP and the health component of Universal Credit would be protected from any real-terms reductions for now, especially those living with severe conditions. These guarantees help plug the biggest gaps in public trust, for now, by keeping key groups safe from the sharpest cuts.
Big Promises, Delayed Decisions, and the Future of UK Welfare
The climbdown doesn’t mean everything’s off the table. The government still wants to save a huge £4.7 billion a year by 2029/30, mainly by tightening Personal Independence Payment eligibility rules and adjusting Universal Credit rates. But for now, any big changes to PIP have been kicked down the road, with the government saying it won't change the criteria until a thorough review is finished.
This review, ordered in response to the backlash, is meant to be shaped directly by disabled people themselves. Led by Social Security Minister Sir Stephen Timms, officials will team up with disability advocates and campaigners to redesign the way assessments work. The government says this will make things fairer and more transparent, but many people are wary, especially after months of uncertainty that left disabled communities feeling ignored.
For millions, the news brings a sense of relief but not much peace of mind—at least not yet. PIP provides vital support for those whose disabilities make daily life a grind, and any threat of cuts carries huge risks. The government’s second attempt at passing the Universal Credit and PIP Bill is still set for July next year. Until then, there’s plenty of debate—and anxiety—still to come as welfare policy hovers between tough savings targets and the promise of real protection for the most vulnerable.
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