- Sir Keir Starmer's Labour government has made a significant £1.5bn U-turn on planned welfare reforms, following a Rebellion from backbench MPs.
- The concessions ensure that existing Personal Independence Payment (PIP) claimants and current Universal Credit recipients will have their incomes protected.
- New eligibility requirements for PIP will only apply to new claims from November 2026, aiming to alleviate uncertainty for current beneficiaries.
- The U-turn creates a £1.5bn shortfall in Labour's spending plans, which economists warn will need to be covered by tax increases or cuts elsewhere.
- Reactions to the U-turn are mixed, with some charities welcoming the protections for vulnerable people, while others, including the MS Society and the Tories, criticized the move.
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