Summary

  • The government confirms a U-turn on its cuts to disability benefits in a bid to avert rebellion by more than 120 Labour backbenchers

  • People who currently receive personal independence payments (Pip), or the health element of universal credit, will continue to do so

  • Instead, planned cuts will only hit future claimants - here are the changes at a glance

  • How much will the changes cost? Economics editor Faisal Islam crunches the numbers

  • Work and Pensions Secretary Liz Kendall says the bill is now in "a good place", while No 10 says there won't be a "permanent" increase in government borrowing because of the changes

  • The Tories describe the concessions as "the latest in a growing list of screeching U-turns" from the government

  1. MPs from other parties react to Starmer's U-turnpublished at 09:03 British Summer Time 27 June

    Sian Berry speaks outside ParliamentImage source, Getty Images
    Image caption,

    Green Party's Sian Berry calls on Starmer to withdraw the bill

    As we've been reporting, Keir Starmer's government is making changes to its welfare bill, offering a series of concessions to Labour rebels.

    It's not just Labour – MPs from other parties have also reacted to the prime minister's late-night U-turn.

    Shadow work and pensions secretary Helen Whately describes the U-turn as "humiliating".

    "We offered to help the government make bigger and better welfare savings to get more people off benefits and into work," she said on X. "But Starmer ducked the challenge - leaving taxpayers to pick up the bill."

    Green Party MP Sian Berry is calling on Starmer to withdraw the bill.

    "The responsibility is now with other Labour MPs to stand firm in the face of this inadequate offer," she says.

    "Political pressure means a reprieve for some who were set to be cruelly harmed, but this will leave disabled people, young people and those who will become sick and injured in the future, high and dry."

    We'll bring you more reactions as we get them.

  2. MP leading rebellion says new offer brings huge change for disabled peoplepublished at 08:40 British Summer Time 27 June

    Dame Meg HillierImage source, PA Media

    Meg Hillier put forward the amendment to block the welfare bill, which has now been signed by more than 120 Labour MPs.

    Reacting to the government's overnight U-turn, the Labour MP says, "it is an offer which makes a huge change to disabled people and that is what is at the core of this."

    Hillier tells BBC Radio 4's Today programme that she and other Labour MPs will now vote for the measure on Tuesday.

    "I have already had a flurry of messages from people saying they feel this is a good step forward," she adds.

    "We do need to be looking at the detail. Compared to where we were on Monday, we now have over 300,000 people reassured who can wake up this morning and feel less concerned about their future."

  3. Revised proposals not well thought through, says Labour MPpublished at 08:24 British Summer Time 27 June

    Nadia WhittomeImage source, Getty Images

    Labour MP Nadia Whittome has been firmly against the original welfare amendments. When asked if the changes made in the last few hours would change her mind, Whittome replies: "In short no."

    She tells the BBC Today programme: "There will still be £3bn worth of cuts which will push people into poverty.

    "Even these revised proposals are nowhere near good enough," she says, adding that they are "not well thought through".

    "If the government doesn't pull the bill, doesn't consult properly with disabled people and come back to MPs with a serious proposal that protects the dignity of disabled people, then I will vote against, and I will be far from the only one."

  4. What are the government's concessions?published at 08:08 British Summer Time 27 June

    The Universal Credit and Personal Independence Payment Bill would change who could qualify for certain disability and sickness benefits.

    The government hoped to save £5bn a year by 2030 with the bill, while slowing the increase in people claiming benefits. Working-age health-related benefits are estimated to cost an extra £30bn by 2029 without reforms.

    But the government faced growing discontent from around 120 of its own MPs over the changes.

    In a bid to avert rebellion, claimants of the personal independence payment (Pip) will continue to receive what they currently get, as will recipients of the health element of universal credit.

    Instead, planned cuts will only hit future claimants.

    As well as changing who will be affected by the cuts, ministers are also expected to fast-track a £1bn support plan originally scheduled for 2029.

    Chancellor Rachel Reeves had factored these cuts into her Spring Statement - designed to help meet her economic plans - but it is now unclear how the fresh changes will affect these.

    A protester holding a sign reading "No Ifs, No Buts, No Disability cuts"Image source, Getty Images
    Image caption,

    The government's welfare policies prompted protests outside Parliament earlier this year

  5. Rebels broadly happy with the climbdownpublished at 07:56 British Summer Time 27 June

    Chris Mason & Sam Francis
    Political editor and Political reporter

    As we've been reporting, the welfare bill has its second reading on Tuesday which is the first opportunity for MPs to support or reject it.

    Broadly speaking, the rebels have told the BBC their colleagues are happy with the concessions, meaning it is now likely to pass.

    Meg Hillier, who has led the effort to block changes to disability benefits, says she would now support the bill as "it is a good step forward".

    She says that she is pleased that the changes would mean "involving disabled people themselves in the future design" of benefits.

    But Peter Lamb, Labour MP for Crawley, writes on social media that he would still not support the bill - calling the changes "insufficient" and accusing ministers of ignoring better options.

    If the legislation passes on Tuesday, it will then face a few hours' examination by all MPs the following week - rather than days or weeks in front of a committee.

  6. Minister confident welfare bill will pass in Commons votepublished at 07:40 British Summer Time 27 June

    Care Minister Stephen Kinnock tells BBC Breakfast he is confident the welfare bill will progress on Tuesday when it faces a vote in the Commons.

    "I think it has been a positive process," he says when asked how the mood is with the government this morning.

    Kinnock adds that "backbenchers have engaged with ministers" and the government is now "striking the right balance" between protecting the most vulnerable in society and reforming a "broken system".

    He explains he has "huge respect" for his Labour colleagues who he says have "stood up" for their constituents.

  7. Care minster speaking to BBCpublished at 07:34 British Summer Time 27 June

    Stephen Kinnock

    Care minister Stephen Kinnock is speaking now to BBC Breakfast.

    We'll bring you the key lines as he's asked about the welfare bill.

  8. Constituents were fearful of losing benefits, Labour rebel tells BBCpublished at 07:23 British Summer Time 27 June

    Anna Dixon

    Anna Dixon, one of the 126 Labour MPs who opposed the government's welfare reforms, says she is pleased with the climbdown.

    She tells BBC Breakfast: "We had constituents who were fearful of losing their benefits.

    "I am really pleased there has been some movement and we have seen some changes.

    "At least one of the concessions is to ensure that current claimants will not lose their personal independence payments (Pip) and I think that is really important."

    Dixon says MPs will review the changes to the welfare package before the vote in Parliament on Tuesday.

  9. 'Starmer caves in': A look at the front pagespublished at 07:17 British Summer Time 27 June

    The front page of The Daily Telegraph and the Daily Mail. Both have the headline "Starmer caves in to rebels on benefits". The former has a large, vertical picture of Ana Wintour for a separate story on the front page, while the latter has a story titled "in a plot twist worthy of John le Carre, we reveal grandfather of the brilliant new head of M16 was a Nazi spy chief".

    The government's major concessions to rebels within its own party over planned benefits reforms are dominating the UK front pages this morning.

    The Daily Mail describes it as a "humiliating climbdown" for Sir Keir Starmer.

    The Guardian speaks of "massive concessions", offered to placate rebel backbenchers, and brands the move a "major U-turn".

    "New Hope on PIPs" is the the Daily Mirror's headline, while the Daily Telegraph calls it a "cave in".

    The Times has the headline: "PM pledges protections for disabled to rescue bill."

  10. Analysis

    Starmer has endured one of his bumpiest days yet in Downing Streetpublished at 07:14 British Summer Time 27 June

    Chris Mason
    Political editor

    Keir StarmerImage source, PA Media

    Three U-turns in a month. The winter fuel payment. A grooming gangs inquiry. And now this on benefits.

    Keir Starmer has just endured his bumpiest days yet in Downing Street, publicly humiliated by coachloads of his MPs in a well-executed campaign that nigh on guaranteed his eventual capitulation.

    The alternative was defeat. In addition to the anger and uncertainty this saga has caused so many benefits recipients, two potentially long-lasting political consequences: for the prime minister’s authority and the Treasury’s spreadsheets.

    No 10 had rapidly concluded this about-turn was their least worst option. But this isn’t meant to happen to a government with a landslide majority and certainly not one less than a year into its time in office.

  11. Government confirms welfare climbdown in deal with Labour rebelspublished at 07:06 British Summer Time 27 June

    Chris Mason & Sam Francis
    Political editor and Political reporter

    The government has confirmed it will make major concessions to rebels in its own party over its planned benefits reforms.

    Work and Pensions Secretary Liz Kendall told Labour MPs that claimants of the Personal Independence Payment (Pip) will continue to receive what they currently get, as will recipients of the health element of Universal Credit. Instead, planned cuts will only hit future claimants.

    The government made the climbdown after facing the prospect of defeat in the Commons if it failed to accommodate the demands of more than 100 backbenchers.

    A No 10 spokesperson said it had listened to MPs "who support the principle of reform but are worried about the pace of change".

    The government hoped to save £5bn a year by 2030 with its welfare bill, while slowing the increase in people claiming benefits. Working-age health-related benefits are estimated to cost an extra £30bn by 2029 without reforms.

    We'll bring you updates and reaction to these changes, so stay with us.

  12. No 10 considering changes to welfare policies, but vote to go ahead on Tuesdaypublished at 11:36 British Summer Time 26 June

    Sofia Ferreira Santos
    Live reporter

    The Labour-led rebellion over welfare proposals has prompted action from Downing Street, which confirmed this morning that it’s talking to its own MPs about possible changes.

    A No 10 source tells the BBC that getting the policy right is "not easy".

    Today, a Labour MP tells us the welfare proposal is "very difficult to support". We’ve also heard from a personal independence payment (Pip) claimant who says changes to payments could mean she would lose her home - Although another claimant tells us he is happy to give up his benefit for someone who needs it more. "We need to do something to save the public purse," he says.

    We're still not sure what changes might be made to the welfare proposal, but Lucy Powell, leader of the House of Commons, has now confirmed that the vote on changes to the welfare system will go ahead on Tuesday.

    We’ll be following the vote closely. For now, we’re closing this page. You can read our news piece here, or go into detail from our in depth works below.

    We'll be keeping a close eye on the vote. For now, we're closing this page. You can read our news story here, or dive into more detail with our in-depth coverage below. Thank you for joining us.

    Verify: What are the government’s planned welfare cuts and how much will they save?

    Explainer: What are the Pip and universal credit changes and who is affected?

  13. 'We need to do something to save the public purse,' Pip receiver sayspublished at 11:12 British Summer Time 26 June

    BBC Radio 5 Live has been hearing your thoughts on the proposed changes to the welfare system this morning.

    A 38-year-old man from the north west says he’s happy to give up his personal independence payment (Pip) for someone who needs it more.

    He was diagnosed with acute leukaemia a couple of years ago, and says it’s important to accept the population is “getting older and sicker”.

    He says he became wealthy through business success just before he fell ill, but still qualified for Pip as it’s not means-tested.

    “I don’t need the payment, I’d rather sacrifice mine and see it going to someone who needs it,” he says. “We need to do something to save the public purse.”

  14. 'Go back to the drawing board': Lib Dem leader calls for welfare vote to be scrappedpublished at 11:06 British Summer Time 26 June

    Christina McSorley
    BBC News

    Liberal Democrat leader Sir Ed DaveyImage source, PA Media

    Liberal Democrat leader Ed Davey calls on the government to pull their proposed welfare changes.

    He says the "PM's own backbenchers" can see the damage these reforms could do to unpaid family carers and those they look after.

    Davey made the call as the Liberal Democrats have tabled their own Reasoned Amendment aimed at stopping the bill.

    It highlights the plight of unpaid family carers as a result of these cuts and instead urges the government to fix the crisis in the NHS and social care, to get people off waiting lists and back into work.

    "Family carers do tremendous work in often the most challenging of circumstances, taking huge pressures off our health services and helping loved ones," Davey says, adding that "taking support away from our nation's carers is the worst kind of false economy".

    "I hope the Prime Minister listens and pulls this bill instead of cutting vital support from thousands of vulnerable people."

  15. How would the welfare changes affect Scotland?published at 11:00 British Summer Time 26 June

    Angus Cochrane
    BBC Scotland News

    The answer is not straightforward, since the Scottish government has significant devolved powers over social security.

    The Personal independence Payment (Pip) is being phased out in Scotland and replaced by the devolved Adult Disability Payment, meaning Labour ministers’ plan to impose stricter assessments on the Pip would not affect claimants north of the border.

    However, any reduction on spending on the benefit by the Treasury would have a knock-on effect on the Scottish government's budget.

    Universal Credit (UC), meanwhile, is a reserved benefit paid by the UK government to Scottish claimants.

    That means any reforms – such as restrictions on a top-up for claimants who are unable to work, or an increase in the basic rate – would apply directly to claimants north of the border.

    The UK government has also said the work capability assessment, used to assess UC claimants, is to be fully scrapped by 2028.

    Instead, the UK system will rely on an assessment used for Pip.

    With Pip being phased out in Scotland, it is not yet clear how Scots would be assessed for the health element of UC under the proposed reforms.

  16. We've been left in limbo, says Pip claimantpublished at 10:57 British Summer Time 26 June

    As we mentioned earlier, Nicky Campbell has been taking taking calls on BBC Radio 5Live this morning to hear your thoughts on the proposed welfare changes.

    One of the listeners we've heard from is Viv - calling from Pateley Bridge, North Yorkshire - who says she "won't survive" if her benefits are pulled.

    "I won't survive, mentally or physically. I can’t live on any less than I have now," she says.

    Viv receives around £400 a month through Pip which she says keeps her "afloat", but any changes to it would mean she would lose her home and be unable to pay bills like gas and electric.

    She adds that Pip claimants are left in limbo, not knowing whether they will continue receiving their payments or not.

    She says she voted for Starmer, but is torn between her "loyalty" to the Labour party and her "dislike of their policies at the moment".

    "We’re human beings that are trying to live," she says, adding: "All I want is to get up, look after my family and not be in pain."

  17. 'I don't want to live on benefits, I want to work'published at 10:49 British Summer Time 26 June

    A woman with brown hair and a blonde highlight sits and smiles at a camera.Image source, HANDOUT
    Image caption,

    Kailee Kember-Brown says she has only heard back from 10 of the 40 job applications she's sent

    The BBC has been speaking to one of the people who could find their lives changing if the government's welfare changes go ahead in their current form.

    Teenager Kailee Kember-Brown, a wheelchair user, says she doesn't want to spend her entire life on benefits - but she's so far applied for more than 40 jobs without success.

    The 19-year-old from Dover, in Kent, is currently entitled to a top-up to her Universal Credit income because of her disability.

    But her financial situation could be changing, as the government plans to cut the top-up (worth £423-a-month) for under-22s with long-term illnesses or disabilities.

    A lot of the jobs she has applied for are with companies listed in the government's Disability Confident scheme, which encourages employers to hire and retain disabled staff.

    But Kailee says it's particularly "disheartening" when she fails to hear back from them.

    "When you apply for it and you're like, 'Oh my God, I tick all the boxes,' and then they never get back to you or even look at your CV, it's kind of like, well, what am I meant to do now?"

  18. Leader of House of Commons confirms welfare changes vote will go aheadpublished at 10:38 British Summer Time 26 June

    Lucy PowellImage source, UK Parliament

    We're now hearing from the Leader of the House of Commons Lucy Powell, who is giving a business statement in the House this morning.

    At the start of her statement, she confirms that there will be a second reading of the Universal Credit and Personal Independence Payment Bill on Tuesday 1 July.

    That means the vote on the welfare system changes will go ahead on Tuesday - as Deputy Prime Minister Angela Rayner confirmed in Parliament yesterday.

  19. How eligibility for universal credit could be changingpublished at 10:31 British Summer Time 26 June

    Universal credit (UC) is a single benefit payment for working-age people. It was introduced to replace a range of different benefits for unemployed and low-paid people.

    How does it work right now?

    • Currently, people can receive a health related top-up to their universal credit after undergoing a work capability assessment
    • This process determines if a person's health condition or disability would impact their ability to work
    • If you have limited capacity to work, your UC payment (worth £400.14 a month) more than doubles with an extra top-up worth £423.27

    How could this be changing in England and Wales?

    • The work capability assessment would be scrapped in 2028, under the proposals
    • For individuals applying for health-related financial support and disability benefits, they would instead only face one assessment - which is based on the current personal independence payment (Pip) system
    • Under the government's proposals, claimants would also not be eligible for the incapacity top-up until they are 22 or older
  20. Inbound changes will affect scoring system for Pip - but how?published at 10:19 British Summer Time 26 June

    Personal independence payments (Pip) have two components: daily living and mobility.

    The inbound changes will affect the daily living element - and, more specifically, the assessment you have to undergo to make a claim.

    This assessment involves questions about your condition and ability to perform everyday tasks. It's carried out using a points system, which are awarded based on what you are able to do.

    Take washing, for example - two points are awarded if you need supervision to be able to wash, or if you need assistance to wash your hair or your body below the waist.

    If you need assistance to wash your upper body, you get four points, and eight points if you need someone to wash your entire body.

    How does the current assessment work?

    Under the current system, you need to score at least eight across the 10 activities to qualify. If you score 12 or more Pip is paid at the higher rate.

    And the new?

    From November 2026, a further condition is added - at least one of the 10 activities of daily living must score a minimum of four points.

    The change applies to new and existing claimants.

    In our next post, we'll bring you more on how the changes will affect eligibility for universal credit.