IFS: “The government’s original reform was set to save £5.5 billion.. (by 2029–30) and double that in the long run when fully rolled out. Without reform to Personal Independence Payment, the watered down bill is not expected to deliver any savings over the next four years.”
Welfare bill passes crunch vote after dramatic PIP U-turn - what you need to know https://t.co/Gt0JkUabUo
In a massive climbdown, DWP minister Stephen Timms has confirmed changes to PIP eligibility will wait until a review into the disability benefit, which will be completed next year Thank you to all the Labour MPs who stood firm and helped to achieve this https://t.co/xC7wQlsPmy
The UK government has postponed changes to Personal Independence Payment (PIP) eligibility until after a review led by Welfare Minister Stephen Timms, scheduled to conclude in autumn 2026. This decision represents a major reversal from the original plan to implement welfare reforms, including a four-point eligibility rule for PIP payments, starting in November 2026. The government had anticipated saving £4.5 billion by 2029/30 through these reforms. However, the Institute for Fiscal Studies (IFS) has indicated that without the PIP reforms, the diluted welfare bill is unlikely to generate any savings over the next four years. The PIP section of the welfare bill has been scrapped ahead of a parliamentary vote, with the review being conducted in consultation with disability groups, making it improbable that the four-point criteria will be adopted. The welfare bill passed a critical vote despite criticism from MPs and calls for the government to withdraw and replace the legislation due to the uncertainty about its purpose following these concessions.