Politics latest: Labour rebel hails ‘good deal’ after No 10 makes concessions on welfare | Politics News

The government has made an offer to rebel Labour MPs over its controversial welfare reforms, Sky News understands.

More than 120 Labour MPs had been prepared to vote against the Universal Credit and Personal Independence Payment (PIP) Bill on Tuesday.

The changes come after a ring-around by cabinet ministers failed to bring rebels on side.

The bill was intended to restrict eligibility for the PIP – the main disability payment in England- and limit the sickness-related element of universal credit, to help shave £5bn off the welfare budget by 2030.

A spokesperson for Downing Street said: “We have listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the system.

Watch: MP who tabled amendment hails changes

“This package will preserve the social security system for those who need it by putting it on a sustainable footing, provide dignity for those unable to work, supports those who can and reduce anxiety for those currently in the system.

“Our reforms are underpinned by Labour values and our determination to deliver the change the country voted for last year.”

Liz Kendall, the welfare secretary, said in a letter to MPs there would be two changes to the bill, including ensuring that all of those currently receiving PIP “will stay within the current system.

“The new eligibility requirements will be implemented from November 2026 for new claims only,” Kendall said.

“Secondly, we will adjust the pathway of Universal Credit payment rates to make sure all existing recipients of the UC health element – and any new claimant meeting the severe conditions criteria – have their incomes fully protected in real terms.”