MPs have voted in favour of Sir Keir Starmer’s controversial welfare reforms but 47 Labour MPs rebelled against the government.
The Universal Credit Bill cleared the Commons at third reading this evening after it received MPs backing by 336 votes to 242, a majority of 94.
The changes to the welfare system initially involved cutting Universal Credit and Personal Independence Payment (PIP).
But faced with a rebellion, Starmer softened the bill by promising the changes would only apply to future applicants.
He also conceded by agreeing to only introduce the PIP changes after a review.
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Rebel MPs like Rachael Maskell, for York Central, said: ‘No matter what spin, to pass the Bill tonight, this will leave such a stain on our great party, founded on values of equality and justice.’
She warned making the changes to universal credit before a wider look at reform was putting ‘the cart before the horse, the vote before the review’, and branded the government’s decision-making an ‘omnishambles’.
After the vote, a new Living Standards group of 104 Labour MPs said the government also had to change the way it related to voters, speaking less about growth in the G7 and more about the cost of food.
In their letter to Starmer, the new group said there should now be a big effort towards lowering everyday costs.
‘Our constituents will ask one question at the next election: did this Labour government make me better off?’ it said.
The government will not try and introduce any more reforms to PIP until the Timms Review into the topic has been finished.
Minister Sir Stephen Timms said he wants to get his investigation finished by next autumn.
He said the government will not agree to limit it to 12 months as some MPs wanted.
He added that the government wanted to ‘get on and tackle the disability employment gap’ and said that the Bill ‘addresses the severe work disincentives in universal credit, it protects those we don’t ever expect to work from universal credit reassessment’.
New claimants who sign up for the ‘limited capability for work and work-related activity’ payment would receive a lower rate than existing claimants after April 2026.
This is unless they meet a set of severe conditions criteria or are terminally ill, which the same rebels also opposed.
Minister Stephen Timms did accept more safeguards for disabled people after Labour MP Marie Tidball’s amendment to increase protections for PIP claimants was accepted.
The Bill will now undergo further scrutiny in the Lords at a later date.
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