Plans to overhaul disability and sickness benefits have stalled, leaving millions of claimants facing a long wait before any major changes take effect. After a revolt by Labour backbenchers and an intervention from Sir Keir Starmer, ministers have shelved sweeping welfare reforms until at least late 2026.
Instead, the Government has shifted to a two-tier approach where existing claimants are largely shielded from cuts, while new claimants face tougher rules and lower payments from next year. The delay means that major changes to Personal Independence Payment (PIP) and Universal Credit are not expected before 2027.
The decision follows significant internal opposition within the Labour Party, with backbenchers expressing concerns about the impact on vulnerable claimants. Sir Keir Starmer's intervention was seen as a key factor in the decision to postpone the reforms.
Critics argue that the two-tier system creates an unfair divide between old and new claimants, while supporters say it protects those already receiving benefits. The Government has not yet provided detailed timelines for the implementation of the new rules.
