The UK Government narrowly steered its flagship welfare reform bill through the House of Commons, winning second-reading approval by 335 votes to 260 after making late concessions demanded by Labour back-benchers. Key elements—most notably new eligibility rules for Personal Independence Payments—were postponed pending a review, halving the original £5 billion of projected annual savings and potentially wiping them out entirely, according to the Institute for Fiscal Studies and the Resolution Foundation. The move could eat into Chancellor Rachel Reeves’s fiscal headroom when the Office for Budget Responsibility updates the public-finance forecasts. Cabinet Office Minister Pat McFadden said the changes "will have financial consequences" but insisted the Government remains committed to the election-pledged freeze on tax rates for working people. Opposition MPs argued that the watered-down package may now cost the Exchequer up to £7 billion, making tax increases in the autumn budget more likely. The legislation now proceeds to committee stage, where further amendments are possible. Economists and MPs alike will be watching whether ministers can close the new funding gap without breaching their manifesto tax promises.