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UK MPs Back Universal Credit and PIP Reform Bill After Postponing PIP Eligibility Changes

Last-minute concessions to defer eligibility changes until Sir Stephen Timms’s review concludes won a slim Commons majority over Labour backbench resistance.

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Overview

  • The House of Commons approved the bill’s second reading by 335 votes to 260, securing a 75-vote majority.
  • MPs agreed to pause proposed tightening of PIP eligibility until after a co-produced review led by disabilities minister Sir Stephen Timms and exempt current recipients.
  • The legislation still raises the standard rate of Universal Credit by 16% over four years and halves the health premium for most new claimants from April 2026.
  • Forty-nine Labour MPs defied the government to vote against the bill, marking the most significant backbench rebellion since Sir Keir Starmer became prime minister.
  • Deferring PIP reforms is expected to create a roughly £5 billion funding gap, forcing Chancellor Rachel Reeves to identify new revenue sources.