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Tuesday, July 01, 2025

Concessions not enough as Welfare Bill threatens to push 150,000 into poverty

As MPs prepare to vote on the Labour Government's welfare reforms today, many will still be uneasy at its impact on those with disabilities and the creation of a two-tier benefit system. 

Whether this will be enough to generate a revolt big enough to kill the bill has to be seen, but headlines like this are not going to help the government get the legislation over the line.

The Guardian reports that the government's own impact assessment has found that more than 150,000 people could still be pushed into poverty by the welfare measures despite significant concessions to rebel MPs to protect those already on the benefits:

In an impact assessment written after the changes made in response to a threatened rebellion by more than 120 Labour MPs, officials said there would now be a “negligible” impact on child poverty, which had been one of the key concerns in the original measures.

But it found that an additional 150,000 people could be pushed into relative poverty by 2030 because of changes that would affect future claimants. The original cuts would have pushed an additional 250,000 into poverty, according to the previous assessment.

The work and pensions secretary, Liz Kendall, will set out the changes to MPs later. A number of key rebels – including the Treasury select committee chair, Meg Hillier – have been won over by promises to exempt current disability claimants from the changes and to increase the health element of universal credit in line with inflation.

No 10 said the measures were still essential to change the system and to prevent the welfare bill from escalating – though the changes promised last week will cost the Treasury an extra £3bn.

It is not surprising that a number of MPs including the former government whip Vicky Foxcroft have said that even with the changes they are unlikely to support the bill

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