200,000 people won't face universal credit reassessment under proposed DWP welfare bill

The governmenthas confirmed that under its new welfare bill, set to be voted on this week, 200,000 people would not face a universal credit reassessment.

The prime minister U-turned last week after he faced backlash from Labour MPsover his proposed welfare reforms. More than 120 backbenchers threatened to vote him down, leading Sir Keir Starmer to offer concessions including limiting cuts to the personal independence payment (PIP).

On Monday, the government set out details of the changes it intended to make to the welfare bill. It said that it had “listened to the MPs who support the principle of reform but are worried about the pace of change for those already supported by the social security system”.

Starmer initially proposed restricting eligibility for PIP, but has now suggested that all existing PIP recipients should stay on the current system, while eligibility will be restricted for new claimants from November 2026.

The government also confirmed that 200,000 people in the Severe Conditions Criteria group - those with the most severe lifelong conditions - will not be called for a universal credit(UC) reassessment.

All UC health element recipients and new customers with 12 months or less to live, or who meet the Severe Conditions Criteria, will see their standard allowance combined with their Limited Capability for Work Related Activity rise at least in line with inflation from 2026/27 to 2029/30.

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Work and pensions secretary Liz Kendall said: “We must build a welfare system that provides security for those who cannot work and the right support for those who can. Too often, disabled people feel trapped - worried that if they try to work, they could lose the support they depend on.

“That is why we are taking action to remove those barriers, support disabled people to live with dignity and independence, and open routes into employment for those who want to pursue it.”

She added that the reforms were about delivering “a fairer, more compassionate system” as part of the Plan for Change which aims to support people to thrive, “whatever their circumstances”.

The Second Reading of the UC and PIP Bill will take place on Tuesday. The DWP stated that “for too long, meaningful reform to our welfare system has been ducked and delayed”. It added: “The government is taking decisive action and the difficult decisions needed to restore trust and faith in the system, providing opportunities for those who can work, and security for those who cannot.”

Over the weekend, while speaking at Welsh Labour’s annual conference in Llandudno, Starmer said: “Everyone agrees that our welfare system is broken, failing people every day. Fixing it is a moral imperative, but we need to do it in a Labour way, conference, and we will."

The day before, he told broadcasters: “The most important thing is that we can make the reform we need. We talked to colleagues, who’ve made powerful representations, as a result of which we’ve got a package which I think will work, we can get it right.”

The prime minister added: “For me, getting that package adjusted in that way is the right thing to do, it means it’s the right balance, it’s common sense that we can now get on with it.”