Overview

• MPs approved the Universal Credit and PIP Bill at second reading by 335 votes to 260, delivering a 75-vote majority despite 49 Labour rebels
• Ministers delayed proposed PIP eligibility changes until after Sir Stephen Timms’s co-produced review and guaranteed protections for existing claimants
• The legislation increases the standard Universal Credit rate by 16% over four years while halving and freezing the health element for new claimants from April 2026
• Institute for Fiscal Studies analysts warn that with PIP reforms deferred, the watered-down bill is unlikely to generate any net savings over the next four years
• Backbenchers have tabled amendments ahead of the July 9 committee stage to expand severe condition criteria, postpone health payment reductions and mandate further impact assessments