Overview

• Over 130 Labour MPs have backed a reasoned amendment that would block the Universal Credit and Personal Independence Payment Bill at its second reading.
• Starmer has engaged in talks with dissenting backbenchers and indicated willingness to adjust PIP eligibility criteria to win their support.
• The government projects the reforms will save £5 billion annually and boost work incentives but acknowledges they could push 250,000 people, including 50,000 children, into poverty.
• Institute for Fiscal Studies analysis suggests 800,000 fewer working-age claimants will receive the PIP daily living award by 2029–30 under the proposed changes.
• If it survives the July 1 vote, the legislation will undergo its committee stages on July 9 before final enactment.