The final vote for Labour's welfare plans has updated Universal Credit, impacting all claimants. The government removed changes to Personal Independence Payment amidst potential rebellion from Labour MPs. An above-inflation increase will apply to the standard rate for all claimants, but new claimants will face cuts to the health-related benefit element. Charities criticize this two-tier system created by the amendments. Work and Pensions Secretary Liz Kendall made concessions to prevent rebellion over welfare cuts.
Labour's divisive welfare plans have passed a final vote in parliament, paving the way for changes to Universal Credit that will affect all 7.5 million claimants.
The changes still enshrined in the renamed Universal Credit bill will change payment rates for all, with an above-inflation increase for all claimants.
However, the health-related element of the benefit will be severely cut for new claimants, leading to criticism from charities and campaigners.
Campaigners have argued that cutting the health element for new claimants will create a two-tier system that adversely impacts vulnerable populations.
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