Some rebels still holding out despite Sir Keir Starmer's welfare concessions

Some 126 Labour backbenchers had signed an amendment that would halt the Universal Credit and Personal Independence Payment Bill in its tracks when it faces its first Commons hurdle on July 1.

Rebels now believe the concessions on offer, which include protecting personal independence payments (Pip) for all existing claimants, will be enough to win over a majority.

However, many MPs are yet to be convinced. Calder Valley’s Josh Fenton-Glynn, one of the Labour rebels who signed the amendment, told The Yorkshire Post he would “spend the weekend talking to colleagues and disabled people” before deciding how to vote.

The Labour MP said he was pleased with the changes for current Pip claimants, explaining fears about losing benefits “caused huge anxiety for people with disabilities, and that won’t happen now”.

However, he added: “The offer from the Government doesn’t achieve everything I want, although it’s a lot better.”

While Leeds Central and Headingley MP said he feared the Government was creating a “two-tier system” of benefits.

The changes to Pip eligibility will be implemented in November 2026 and apply to new claimants only while all existing recipients of the health element of Universal Credit will have their incomes protected in real terms.

“Whether you acquire disability at birth, five years ago or tomorrow, it should be the same for everyone,” he told the BBC.

“It makes me very uncomfortable … that what we’re not doing is thinking about a holistic approach for disabled people, and how we can support them.

“One in five people who get Pip are in work … and I’m concerned that those that are in work may no longer be in work, and those that acquire a disability and are in work now will have to leave work.

“That is a core concern for so many of us.”

Despite this disquiet, yesterday morning Health Minister Stephen Kinnock said the Government was confident of passing the legislation.

He told LBC it was “an improved package” before Tuesday’s vote, and the new system was “both a safety net for the people who cannot work and a springboard for the people who can”.

The changes represent a major climbdown for the Prime Minister, just days after he insisted to reporters he would “press on” with the cuts, arguing there was a “moral case” for them.

Work and Pensions Secretary Liz Kendall confirmed the U-turn in a letter to MPs late on Thursday night, along with plans for a review of the Pip assessment to be led by Disabilities Minister Sir Stephen Timms and “co-produced” with disabled people.

The concessions could also leave Chancellor Rachel Reeves scrambling to fill a hole in her budget come the autumn, with the Institute for Fiscal Studies suggesting they could reduce the projected savings by at least £1.5bn per year.

Ruth Curtice, chief executive of the Resolution Foundation think tank, suggested the changes could cost as much as £3bn and raised the prospect of further tax rises.