Overview

• The welfare reforms passed their second reading on July 1 but now apply only to new Universal Credit and PIP claimants after backbenchers forced limits on projected savings and delays for existing recipients.
• Cuts to Personal Independence Payments originally designed to save £5–6 billion have been shelved for current recipients pending an independent review due in autumn 2026.
• Debbie Abrahams argued the legislation conflicted with Labour’s core values of fairness and compassion and warned that up to 50,000 newly disabled people risk being pushed into poverty.
• Keir Starmer defended the changes as necessary to contain welfare spending growth and pledged to introduce interim support measures for disabled people ahead of long-term reforms.
• Chancellor Rachel Reeves faces pressure to identify new revenue sources to plug a multi-billion-pound shortfall after successive concessions weakened the bill’s savings target.