Keir Starmer survives another welfare rebellion amid outrage at DWP disability cuts

Keir Starmer survived another welfare rebellion as dozens of Labour MPs voted against a controversial shake-up.

Critics lashed out at the Government's stripped-down welfare Bill, which will still see an estimated 750,000 disabled people lose £3,000 a year by 2030. It was branded a "stain" on the party as 47 Labour MPs rebelled against the Government to vote against its welfare reforms.

Charities hit out after the Government's Universal Credit Bill passed its final Commons hurdle with a majority of 94. Ministers faced another rebellion after being forced to climb down last week after more than 100 Labour MPs threatened to vote it down.

Ministers backed raising the Universal Credit standard allowance at least in line with inflation - a move they say will see four million households £725 a year better off. But the Bill will see new claimants who sign up to health-related payments receive a lower rate.

Backbencher Rachael Maskell told the Commons: "To pass this Bill tonight will leave such a stain on this great party founded on the values of equality and justice." The limited capability for work and work-related activity (LCWRA) benefit will be roughly halved for those who claim it from April 2026, unless they are terminally ill or meet a set of "severe conditions criteria".

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Pre-2026 claimants will receive £423.27 but new claimants will receive £217.26. Former Labour MP Zarah Sultana, who last week quit as a Labour member more than a year after having the whip withdrawn, said: "This is a Government not only out of touch but also morally bankrupt. It works for billionaires and big businesses but turns its back on disabled people."

Work and Pensions Secretary Liz Kendall said: “Our reforms are built on the principle of fairness, fixing a system that for too long has left people trapped in a cycle of dependence. We are giving extra support to millions of households across the country, while offering disabled people the chance to work without fear of the repercussions if things don’t work out.

“These reforms will change the lives of people across the country, so they have a real chance for a better future.”

The Government had initially proposed limiting access to personal independence payments (PIP) and health aspects of Universal Credit. Its own analysis suggested this would drag 250,000 people into poverty, including 50,000 childrens.

The controversial measures were set to save around £5billion a year. But outraged Labour MPs refused to back the Bill, prompting the Government to announce a review of PIP headed by DWP minister Sir Stephen TImms.

No changes to PIP will be made until this is complete, rebels were told in a massive concession. Earlier this week the Department for Work and Pensions (DWP) said the changes will now pull 50,000 children out of poverty.

Helen Barnard, director of policy, research and impact at food bank charity Trussell, said: “We are deeply concerned about the cuts being made to Universal Credit health payments for disabled and ill people applying in the future.

"The scale of the remaining cuts in this ill-conceived bill will still be devastating and risks pushing more disabled people to food banks. Life costs more if you’re disabled. Cutting this part of our social security system will mean 9 in 10 disabled people newly claiming the Universal Credit health element will miss out on around £3,000 worth of support on average by 2029/30.

"It makes no sense to rip support away from people in the future, just because their health has worsened, they become disabled, or their income drops after an arbitrary date. "

And Jon Sparkes, chief executive of learning disability charity Mencap said: “By pushing ahead with these cuts, the Government will leave future claimants £3000 a year worse off. This will condemn disabled people with the most complex needs - people who cannot work and have no alternative income - to poverty and a lifetime of existing rather than living.

“It’s important the Government is committed to listening to the needs of disabled people in reforming the PIP system. People with a learning disability should be at the heart of these reforms and we welcome today's commitment and reassurance that this will happen.”

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