PM to announce agreement on welfare changes with Labour rebels

The government is set to unveil a deal with Labour rebels regarding planned benefits changes. Existing Personal Independence Payment (Pip) claimants and recipients of the health element of Universal Credit will maintain their current benefits. Additionally, support for employment will be expedited. This marks a significant shift for the government, avoiding potential defeat by accommodating over 100 backbenchers' demands.

Jun 27, 2025 - 04:16
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PM to announce agreement on welfare changes with Labour rebels

The government is expected to announce a deal with Labour rebels on its planned benefits changes. Existing claimants of Personal Independence Payment (Pip) and recipients of the health element of Universal Credit will continue to receive current benefits. Support for employment will be fast-tracked. The government made concessions to avoid defeat from over 100 backbenchers.

Sir Keir Starmer rallied 120 Labour MPs against the welfare bill. He emphasized reform with fairness and Labour values. The bill aims to save £5bn annually by 2030. The government's spending plans may be affected by the reforms.

Ministers want to slow the rise in benefit claims. The Institute for Fiscal Studies predicts a rise in health-related benefit spending without changes. Labour MPs criticize the government's proposals, including stricter requirements for Pip claimants.

According to the source: BBC.

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