MPs vote to make Labour's 'reckless' benefits bill into law – despite disabled people's fears. Now what?

The Labour government’s welfare bill has won support from MPs – despite fears that it is a “reckless assault on disabled people” – and will progress to being made law.

It will see the standard rate of universal credit increase above the rate of inflation and is expected to lift 50,000 people out of poverty by the end of the decade.

But there remain significant concerns about cuts to the health element of universal credit for new claimants, which will impact hundreds of thousands of people.

The future of the personal independence payment (PIP) also remains uncertain.

Read more:

• UN committee sounds alarm over Labour’s benefits bill: ‘It should shame the government’
• It never crossed my mind I might need disability benefits. Now I don’t know where I’d be without PIP
• PIP cuts are paused after ‘shambolic’ series of U-turns – but is it enough to rebuild trust in Labour?

A total of 336 MPs voted in favour of the Universal Credit and Personal Independence Bill being made law, while 242 MPs rejected it. It means the government won by a majority of 94 votes.

The Big Issue understands that it will be certified as a ‘money bill’ by the speaker of the House of Commons, meaning it will effectively surpass the normal process of moving forward to the House of Lords.

It will become law within one month of passing third reading, and peers will be blocked from making any amendments to the bill.

The vote comes after the government was forced to make significant concessions to the bill following a rebellion from Labour MPs.

This included shelving PIP cuts until the government can carry out a review of the assessment process, and limiting any reforms to new claimants.

Despite these concessions, the government has been warned by some MPs and disability organisations that this bill remains a “reckless assault on disabled people”.

In a rare intervention ahead of the vote, the United Nations Committee on the Rights of Persons with Disabilities wrote to the government to raise concerns around how the welfare bill undermines human rights obligations set out in its convention.

It asked for more detail from the government, including a full-scale impact assessment, and warned that the UK risks “regressing” in ensuring that the human rights of disabled people are upheld.

John McDonnell, MP for Hayes and Harlington who lost the Labour whip last year, said in a debate ahead of the vote: “I will not vote for any legislation which cuts the benefits of some of the poorest constituents I represent.”

The former shadow chancellor said he remembers a tapestry being brought into parliament after the Conservatives had slashed welfare, with the names of people who had taken their own lives as a result of benefit cuts.

“It was one of the most distressing things I’ve seen in my political life and I wept that day. I don’t want that to happen again,” McDonnell said. “As sure as night follows day, if cuts go through on this scale, people will lose their lives. They will suffer immense harm.”

It is estimated that 750,000 people will miss out on an average of £3,000 a year by the end of this parliament as a result of the cuts to the health element universal credit. This represents around £2bn of cuts by 2030.

These will see the health element of universal credit slashed in half for new claimants and then frozen, while new claimants under the age of 22 will lose it entirely.

Current claimants of the health element of universal credit will be protected from the cuts, as will those with severe health conditions, and will see this part of the benefit increase in line with inflation.

Any changes to universal credit will not happen until April 2026.

Cat Eccles, Labour MP for Stourbridge, spoke personally about how she was forced out of work after she had a pulmonary embolism and almost lost her life. She relied on universal credit and was almost at risk of losing her home.

“My confidence plummeted. The feelings of failure, rejection, feeling useless at not being able to sustain myself were all consuming. Nobody chooses this life,” Eccles said.

She referenced the UN committee’s concerns around “false” public statements made by politicians which have portrayed disability benefit claimants as “making profit” off of benefits or “being a burden to society”.

Labour MP Kim Johnson said the welfare bill is “economically reckless” – and that any savings will shift costs onto the NHS, local authorities, unpaid carers and working class communities.

“Despite hard won concessions, this bill remains a reckless assault on disabled people,” Johnson said.

It is unclear how many people may face poverty as a result of the cuts to the universal credit health element.

However, the government has estimated that the welfare bill will pull 50,000 people out of poverty because of the increase to the standard rate of universal credit.

The standard allowance for a single person over 25 will increase by £7 per week from April 2026, from £91 to £98. This is a key reason a number of MPs cited in their decision to vote in favour of the bill and not delay it further.

In last-minute concessions announced ahead of last week’s vote, ministers amended the bill to drop the plans for PIP cuts.

Any reforms to PIP will only happen after a government review into the PIP assessment, co-produced with disabled people and the organisations which support them, has concluded.

Kirsty Blackman, SNP MP for Aberdeen North, questioned the disability minister Stephen Timms over his plans to review the PIP assessment.

She asked about the purpose of the review and whether the aim is to “make the assessment more humane” or to cut billions from the welfare bill.

Although the Timms review will be co-produced with disabled people’s organisations, there is no certainty that the government will not subsequently propose PIP cuts in some form.

Stella Creasy, Labour and co-operative MP for Walthamstow, agreed that disabled people must be given “clear power to veto” any reforms to PIP.

Charities have warned that the government’s pledge to co-produce a review of PIP cannot be used to legitimise backdoor cuts against disabled people.

Anti-poverty charity Z2K is calling on the government to guarantee that disabled people have decision-making power over the Timms review recommendations and for a formal consultation on any proposed changes.

Anela Anwar, chief executive of Z2K, said: “We have serious concerns about the robustness of the government’s commitment to co-produce changes to disability benefits with disabled people. The Timms review cannot be a mere tick-box exercise – the government must honour its promise to MPs.

“This means meaningful engagement and decision-making power for disabled people in the review, as well as a commitment to bring forward changes from the review via primary legislation to ensure parliamentary scrutiny.

“Without these safeguards, the government’s promise of co-production will be nothing more than empty words – and could pave the way for further damaging cuts to disability benefits behind closed doors.”

Do you have a story to tell or opinions to share about this? Get in touch and tell us more.