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Concessions to welfare reforms to be revealed after Labour backbench rebellion forces government retreat

  • The UK government is announcing amendments to the bill concerning welfare benefits, including changes to Universal Credit and disability payments, ahead of its second reading scheduled for Tuesday, July 1, 2025.
  • These concessions come after a rebellion in which 126 Labour backbenchers supported an amendment seeking to stop the Bill during its initial Commons debate.
  • The revised Bill protects existing claimants with transitional arrangements and imposes stricter PIP eligibility only on new claims from November 2026.
  • Health Secretary Wes Streeting acknowledged past mistakes but emphasized that corrections have been made, and he expects discussions on additional changes in the future. Meanwhile, Sir Keir Starmer described reforming the welfare system as a fundamental ethical duty.
  • The concessions may reduce immediate savings but aim to support disabled people into work, while the Scottish government faces cuts estimated at £250 to £300 million from related funding reductions.
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The reform of social assistance splits Labour. Shortly before his first service anniversary, the British Prime Minister lacks authority. Does he get his majority today?

·Frankfurt, Germany
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Bloomberg broke the news in United States on Sunday, June 29, 2025.
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