Number 10 has made concessions on its welfare bill after crisis talks with Labour rebels.

Sir Keir Starmer will be hoping the changes are enough to avoid a Commons defeat when the measures are put to a vote on Tuesday – but several MPs have said they are still not satisfied.

Sky News looks at what was in the deal and whether it will be enough to win over critics.

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

Changes to PIP

In a letter to MPs, Work and Pensions Secretary Liz Kendall confirmed all existing claimants of the personal independence payment (pip) will be exempt from the cuts to eligibility.

It means the new qualifying requirements will be implemented from November 2026 for new claims only.

This is a big U-turn as the changes to pip, the main disability benefit in England, had caused the most upset among MPs planning to rebel.

Pip is money given to people, including some of whom are in work, who have extra care or mobility needs as a result of a disability.

People who claim it are awarded points depending on their ability to do certain activities, such as washing and preparing food, which influences how much they will receive.

Currently claimants need to score a minimum of eight points across a range of tasks to qualify for the daily living element (there is a mobility element that is not affected by the plans). Under the new rules people will need to score a minimum of four points in at least one activity to qualify.

By limiting the changes to new claimants only, it is estimated 370,000 people who had been due to lose out will now get to keep their benefit.

This will come at a cost of £1.5bn by the end of the parliament, according to the Institute for Fiscal Studies.

It is not clear how that will be funded, prompting speculation of tax rises at the autumn budget.

Universal Credit

The second row back involves planned changes to universal credit (UC)

The government had intended to freeze the health top-up at £97 a week during this parliament.

However, all current recipients of the health element, as well as any new applicants meeting the “severe conditions criteria”, will now have their incomes protected in real terms.

The government will still cut the rate to £50 for new claimants from 2026/7, while raising the standard rate of UC for jobseekers.

More money for people to find work

The health top-up is for people who have a limited ability to work because of a disability or long term sickness, but ministers are concerned about the rising number of claimants and want to incentivise people back into work.

Ms Kendall previously said £1bn would be used for targeted support schemes to help people out of inactivity and into jobs.

In her letter, she said the government “will front load more of the additional funding generated by these reforms for back to work support for sick and disabled people”.

Will MPs back the changes?

Care minister Stephen Kinnock told Sky News on Friday morning the changes are a “really big step in the right direction”.

The purpose of the bill was to shave £5bn off the welfare budget by 2030 and tackle the rising numbers of people who are economically inactive. Lots of MPs said they agreed with the principle of reform but were concerned with the impact on disabled people.

Initially, over 120 Labour MPs had signed a “reasoned amendment” calling for the changes to be delayed while disabled people were consulted on.

Dame Meg Hillier, the influential chair of the Treasury select committee who had tabled the amendment, said last night that the government had offered a “good deal”.

However, it is ultimately up to individual MPs to decide if they want to support it.

Read more:
Beth Rigby analysis: Welfare bill a humiliating blow for Starmer

Several MPs on the left of the party have come forward to say they won’t. This includes the likes of Richard Burgon, Ian Byrne and Nadia Whittome, who have expressed concerns about a two-tier system.

Sky News has spoken to other MPs who privately say they won’t back the bill. One rebel said a WhatsApp group has been set up to announce their intentions and he believes 50 have already stated their intention to vote against the bill.

Others have told Sky News they are undecided. One rebel said she has “no idea” how she’ll vote and is “waiting to see the finer details and how things pan out on Monday”. Another said he expects he will no longer vote against but will make his mind up firmly when he has seen the full details.

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

More than 120 Labour MPs were poised 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.

‘We have listened’

N.10 said in a letter to MPs: “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.

“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 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,” Ms 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.”

Sky News political editor Beth Rigby was earlier on Thursday told existing PIP claimants will be able to keep their payments, which means 370,000 people will not lose out.

This will cost the government at least £1.5bn, according to the Institute for Fiscal Studies.

Sky News understands that a senior source has accepted the change, but it will be up to each individual rebel to make a decision on whether to withdraw.

The source said they think the changes are a “good package” with “generous concessions”.

Politics latest: Government to make offer to rebels

A reasoned amendment signed by 126 Labour MPs argued that disabled people had not been properly consulted and further scrutiny of the changes is needed. If passed, this would have killed the bill.

Sky News understands that some senior rebels are willing to accept the concessions – with one saying that “the concessions will be positively received, and I expect to vote with the government now”.

Other MPs who had not wanted to rebel were also expecting to change their votes.

However, several Labour MPs on the left of the party have gone public to say they will still oppose the government, including Diane Abbott, Richard Burgon, Nadia Whittome and Brian Leishman.

Conservative shadow chancellor Sir Mel Stride said the change would mark a “screeching U-turn” – and claimed the changes mark “another unfunded spending commitment”.

Meanwhile, Helen Whately, shadow work and pensions secretary, said: “This is another humiliating U-turn forced upon Keir Starmer.

“With the sickness benefits bill set to reach £100 billion by 2030 the country needs action. But Labour has lurched from a bad plan to a next-to-nothing plan.

“The latest ‘deal’ with Labour rebels sounds a lot like a two-tier benefits system, more likely to encourage anyone already on benefits to stay there rather than get into work.”

What is PIP?

The biggest shakeup to the system involved changes to PIP – money given to people, including some of whom are in work – who have extra care needs or mobility needs as a result of a disability.

People who claim it are awarded points depending on their ability to do certain activities, such as washing and preparing food, and this influences how much they will receive.

From November 2026, people would have needed to score a minimum of four points in at least one activity to qualify for the daily living element of PIP – instead of fewer points spread across a range of tasks.

This would have impacted existing claimants as well as new ones. The government’s concessions are understood to see this change dropped for existing claimants.

Universal credit

The government intended to freeze the health element of universal credit, claimed by more than two million people, at £97 a week during this parliament, and cut the rate to £50 for new claimants.

Again, it’s understood the government’s concessions mean this change now won’t apply to existing claimants.