Britain’s watered-down Welfare Bill cleared its final Commons hurdle on Wednesday, passing 336–242 after ministers agreed a series of concessions to quell resistance from their own benches and parts of the Labour Party. The legislation trims the health-related element of Universal Credit for new claimants while boosting the benefit’s standard allowance above inflation, a change the government says will leave almost four million households around £725 a year better off. Major measures originally proposed—such as stricter eligibility rules for Personal Independence Payment—were shelved. Instead, Disabilities Minister Sir Stephen Timms will lead a review co-produced with disabled people and charities, due to report in autumn 2026. Cuts to the Limited Capability for Work and Work-Related Activity element will still apply to new applicants from April 2026, though existing recipients are protected. Despite the climb-down, 47 Labour MPs defied their party leadership to oppose the bill, and attempts by both opposition and Conservative backbenchers to toughen or water down the reforms were defeated. Classified as a money bill, the legislation can become law within a month without Lords approval. The concessions largely erase the Treasury’s earlier estimate of £5 billion in annual savings, intensifying scrutiny of the policy’s fiscal impact ahead of the next Budget.