Children’s commissioner says any Labour strategy to tackle deprivation must scrap the two-child benefit cap
Children in England are living in “almost Dickensian levels of poverty” where deprivation has become normalised, the children’s commissioner has said, as she insisted the two-child benefit limit must be scrapped.
Young people said they had experienced not having enough water to shower, rats biting through their walls, and mouldy bedrooms, among a number of examples in a report on the “crisis of hardship” gripping the country.
Dame Rachel de Souza said she had noticed a significant shift in how young people talked about their lives since she became children’s commissioner four years ago, and that “issues that were traditionally seen as ‘adult’ concerns are now keenly felt by children”.
“Children shared harrowing accounts of hardship, with some in almost Dickensian levels of poverty,” she said. “They don’t talk about ‘poverty’ as an abstract concept but about not having the things that most people would consider basic: a safe home that isn’t mouldy or full or rats, with a bed big enough to stretch out in, ‘luxury’ food like bacon, a place to do homework, heating, privacy in the bathroom and being able to wash, having their friends over, and not having to travel hours to school.”
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She said that, in “one of the richest societies in the world”, people in power “should be ashamed that children are growing up knowing their futures are being determined by their financial circumstances”.
The government’s landmark bill on welfare reform passed by 335 to 260 votes on Tuesday evening, after staving off a major rebellion from Labour MPs. To win over backbench MPs who had opposed the bill, the government made a series of concessions, including a last-minute compromise agreeing that any changes to personal independence payment (Pip) will not be introduced until the outcome of a review.
In March, the government introduced the universal credit and personal independence bill. The aim was to create a sustainable welfare system in response to changing demographics and population health.
In recent years, the UK has seen an increase in people claiming benefits for long-term health conditions, with one in ten people of working age claiming a sickness or disability benefit. Welfare expenditure has increased, and is projected to be £70 billion a year by the end of the parliament.
Recalibrating the welfare system is not an easy task. The government has said reform is needed to support those with highest needs and assist more people into work. However, critics of the bill, raised concerns that it would result in an overly restrictive disability benefits system and push more people into poverty.
Here’s what’s the bill initially proposed and what was changed ahead of the vote.
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Personal independence payment
The bill initially proposed significant changes to personal independence payments (Pip) from November 2026. Pip is a working-age benefit to help people with the costs associated with a long-term health condition or disability. It has two elements, a daily living component and a mobility component.
A points-based system is used to assess eligibility for Pip. Currently, to qualify for the daily living component a claimant must have limited ability in relation to a range of ten activities. These include washing and bathing, dressing and undressing, eating and drinking and managing medication or therapy.
Eight to 11 points leads to qualification for the standard rate and over 12 points for the enhanced rate. On the current system, a claimant can score one or two points across a range of activities, it doesn’t matter how the points are made up.
In March, the government announced that from November 2026, claimants will need to score at least four points on at least one of the ten activities to qualify. The amount of points available ranges from zero to 12, depending on the activity.
Critics argued that this places the bar at too high a level, making it more difficult for people whose health problems are spread across a range of activities, rather than meeting the criteria in one.
Needing assistance managing medication is one area where Pip points are measured. Yuri A/Shutterstock
Concerns were raised that this change could disproportionately affect people with mental health problems. Research shows that previous changes to Pip have caused uncertainty and anxiety for many people with mental health problems.
Typically if the help required relates to being reminded or encouraged to compete a task, only two points are awarded. This can be a common way for people with mental health problems to qualify for Pip, including those with severe conditions such as bipolar disorder. It is estimated that between 800,000 and 1.2 million people would have lost entitlement to Pip under the four-point proposal.
After it became clear that dozens of Labour MPs planned to vote against the bill, the work and pensions secretary, Liz Kendall, announced a concession on the Pip proposals. First, that four-point rule should only apply to new claimants, with people already in receipt of Pip remaining within the current rules. Second, there will be a review of the Pip assessment led by Stephen Timms, the minister for social security and disability, alongside people with disabilities and representative organisations.
But for some MPs and campaigners, this raised the spectre of a two-tier system which protects existing claimants but not future ones. Two hours before the Commons vote, Timms announced that no changes would be made to Pip eligibility before the review. The bill passed without any changes to Pip.
Universal credit
What remains in the bill are changes to universal credit, the UK’s main means-tested benefit, primarily for claimants who are unfit for work.
Over 3 million claimants (out of a total of over 7 million) are not required to look for work as a result of a health condition. They receive an additional health-related payment of more than £400 per month. The bill reduces the health element for new claims from £97 to £50 per week from April 2026 and restricts payment to claimants over the age of 22.
Under original proposals, the higher health-related rate was to be frozen for existing claimants. This will now be increased every year for the rest of the parliament, at least in line with inflation.
A £1 billion back-to-work support package, originally scheduled to be introduced in 2029, will be accelerated.
The Department for Work and Pensions estimates that 730,000 future universal credit claimants will lose an average of £3000 per year compared to current claimants.
Labour minister Pat McFadden has ruled out raising income tax, VAT or national insurance, but questions remain on how these concessions will be paid for.
The government technically won the vote on welfare reform, but was unable to push through its most significant reforms. The debate over the future of the welfare system will continue (and probably intensify) as the Timms review begins.
Keir Starmer says that the Labour Party under his leadership all feel a small part of Scunthorpe.Keir Starmer confirms that he’s proud to be a red Tory continuing austerity and targeting poor and disabled scum.
Keir Starmer won Commons backing for his welfare Bill this evening after making further concessions to Labour rebels which leave the legislation eviscerated.
MPs rejected an amendment to sink the bill by 328 votes to 149 after an impassioned debate, suggesting a significant backbench revolt.
A further vote on approving the Bill was passed by 335 votes to 260, with the Tories voting against, cutting the government’s majority in half. It is believed 42 Labour MPs voted against the whip on the amendment.
Still facing defeat after earlier retreats that left benefits to disabled people already claiming Personal Independence Payments (PIP) untouched but threatened cuts for future claimants, Starmer backed down further at the eleventh hour.
Changes to PIP payments for future disabled claimants will now be paused until the conclusion of a review by Welfare Minister Stephen Timms, rather than being imposed from November 2026.
The latest retreat leaves the Bill bereft of most of its original purpose and without the £5 billion savings Chancellor Rachel Reeves was eager for.
And it leaves the Prime Minister’s authority radically diminished after bruising criticisms from normally loyal Labour MPs.
Members of Disabled People Against Cuts (DPAC) protest in Leeds. Photo: Neil Terry Photography
… Keir Starmer could face the biggest parliamentary revolt since the Iraq war as MPs vote on welfare cuts the government’s own figures say will push 150,000 into poverty by 2030 tomorrow.
No 10 was accused of “total desperation” as furious Labour rebels vowed to vote down the Universal Credit and Personal Independence Bill.
Celebrities joined disabled activists as they staged protests outside Parliament and across the country today against the plans to create a “two-tier” welfare system.
Disabled People Against Cuts co-founder Linda Burnip told the Morning Star: “We are very much against the paltry concessions that have been made which actually don’t seem to going to protect anyone.
“It smacks to me of total desperation, they are just flopping around changing things from one day to another.
“We are obviously not being bought off by the concessions and protests will continue and we will make sure that any Labour MPs that vote in favour of this Bill don’t get back into the Parliament at the next election.”
Keir Starmer has been dealing with his most serious parliamentary challenge since he became prime minister. More than a hundred Labour MPs backed a motion to stop in its tracks the government’s attempt to reduce the welfare bill, including by raising the threshold at which someone can claim disability benefit.
This issue has divided the parliamentary Labour party. But what does the public think?
Although there are signs people recognise that spending on disability benefits is now relatively high, the latest annual British Social Attitudes (BSA) report reveals that it is far from clear that they are supportive of cutbacks. And, unfortunately for the government this is especially true of those who voted Labour last year.
Ever since the late 1990s, BSA has regularly asked its respondents whether they would like “to see more or less government spending than now on benefits for disabled people who cannot work”. In 1998, 78% indicated they would like to see more spending. By 2011, that figure had fallen to 53%, and it was still no more than 56% in 2021.
Now, though, only 45% would like to see more money spent on disability benefits. For the first time, less than half the country backs giving those with a disability more help.
However, that does not mean most voters would like to see actual cutbacks. Only 11% say the government should spend less on disability benefits. The rest are content with the status quo.
Meanwhile, just 5% of those who voted Labour last year back less spending. Over half (53%) are in favour of an increase.
The government’s central argument is that it has become too easy to claim disability benefits and that this is discouraging people from getting back into employment.
There is some support for this view. Among the public in general, 29% say it is “too easy” to claim disability benefit. The trouble is, just as many, 29%, take the opposite view and say it is “too difficult”. The most popular response, given by 35%, is that it is “neither too easy nor too difficult”.
Meanwhile, among Labour voters, the balance of opinion is clearly tilted towards the view that claiming disability benefit is “too difficult”. As many as 39% say so, while only 20% feel it is “too easy”.
Similarly, most voters (62%) feel the requirement for people on disability benefits to take “active measures to find appropriate work” is “about right”. Just 11% feel it is “too weak”, while more than twice as many (23%) believe it is “too tough”. Only 6% of Labour voters believe it is “too weak”.
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These figures help explain why the government has seemingly been struggling to head off the rebellion. Already burned by voters’ reaction to last year’s cutback to the winter fuel allowance, and with their party trailing Reform in the polls, Labour MPs now find themselves presented with another cut that threatens to be unpopular with many of those who put them into Westminster. Little wonder there are now signs the government is having to bend to their view.
Keir Starmer
