With a parliamentary vote on the Universal Credit and Personal Independence Payments (PIP) Bill approaching, Labour has unveiled crucial amendments to safeguard benefit recipients. These last-minute changes come after considerable backlash and pressure from advocacy groups and members of Parliament.
The adjustments, outlined in a letter by Work and Pensions Secretary Liz Kendall, aim to prevent the proposed freeze on benefits and ensure that current claimants continue to receive appropriate financial support.
In the run-up to the vote, Labour has sought to address concerns from disability charities and other organisations, with a particular focus on the health element of Universal Credit and changes to PIP eligibility. Although further details are expected, these amendments represent a significant shift in policy that may affect thousands of claimants.
Safeguards for Existing Universal Credit Recipients
One of the most contentious aspects of the original bill was the proposal to freeze the Universal Credit health component at £97 per week until 2029/2030. This freeze would have applied to both current recipients and new claimants meeting the Severe Conditions Criteria, with future claimants after April 2026 set to receive just £50 per week.
According to BBC reports, the concessions made by Labour have now reversed this freeze. The health element will instead rise in line with inflation, ensuring that recipients do not lose out in real terms over the coming years.
This change addresses concerns that the freeze would disproportionately affect people already struggling with severe health conditions.
Liz Kendall’s letter confirmed that the government would implement an inflation-adjusted pathway for Universal Credit payments, directly benefiting all existing claimants and those who meet the severe conditions criteria.
This adjustment is aimed at mitigating the financial strain on the most vulnerable households, although full details of how these protections will be administered remain to be clarified.
Impact on Personal Independence Payments (PIP) and Eligibility Changes
Alongside the amendments to Universal Credit, Labour has also addressed the future eligibility criteria for Personal Independence Payments (PIP). Under the original proposals, anyone seeking to claim PIP after November 2026 would need to meet a higher threshold, requiring at least four points in one of the daily living assessment categories.
This change raised concerns that a large number of current claimants could lose access to essential benefits. However, according to Kendall, current recipients will remain under the existing system, and the new criteria will apply only to new claimants starting in November 2026.
While the safeguards will provide some relief to existing claimants, the changes are still expected to affect many future applicants. The disability charity Scope has warned that this could create a “two-tier” benefits system, with different levels of support based on when an individual’s disability began.