Government offers concessions to Labour rebels on welfare reforms

The government has made an offer to rebel Labour MPs over its controversial welfare reforms, Sky News understands. More than 120 Labour MPs were poised to vote against the Universal Credit and Personal Independence Payment (PIP) Bill on Tuesday. The changes come after a ring-around by cabinet ministers failed to bring rebels on side. The bill was intended to restrict eligibility for the PIP - the main disability payment in England- and limit the sickness-related element of universal credit, to help shave £5bn off the welfare budget by 2030.

Sky News political editor Beth Rigby has been told that existing PIP claimants will be able to keep their payments, which means 370,000 people will not lose out. This will cost the government at least £1.5bn, according to the Institute for Fiscal Studies. Sky News understands that a senior source has accepted the change, but it will be up to each individual rebel to make a decision on whether to withdraw. The source said they think the changes are a \"good package\" with \"generous concessions\".

A reasoned amendment signed by 126 Labour MPs argued that disabled people had not been properly consulted and further scrutiny of the changes is needed. If passed, this would have killed the bill. Other concessions offered by the government include allowing existing claimants to keep the health element of Universal Credit.

Sky News understands that some senior rebels are willing to accept the concessions - with one saying that \"the concessions will be positively received, and I expect to vote with the government now\". Other MPs who had not wanted to rebel were also expecting to change their votes. However, several Labour MPs on the left of the party have gone public to say they will still oppose the government, including Diane Abbott, Richard Burgon, Nadia Whittome and Brian Leishman.

Conservative shadow chancellor Sir Mel Stride said the change would mark a \"screeching U-turn\" - and claimed the changes mark \"another unfunded spending commitment\". Meanwhile, Helen Whately, shadow work and pensions secretary, said: \"This is another humiliating U-turn forced upon Keir Starmer. With the sickness benefits bill set to reach £100 billion by 2030 the country needs action. But Labour has lurched from a bad plan to a next-to-nothing plan. The latest 'deal' with Labour rebels sounds a lot like a two-tier benefits system, more likely to encourage anyone already on benefits to stay there rather than get into work.\"

The government intended to freeze the health element of universal credit, claimed by more than two million people, at £97 a week during this parliament, and cut the rate to £50 for new claimants. Again, it's understood the government's concessions mean this change now won't apply to existing claimants.

According to the source: Sky News.