On Wednesday 9 July, the government’s Universal Credit and Personal Independence Payment (PIP) Bill passed its Third Reading in the House of Commons, by a vote of 336 to 242. The Bill will now move to the House of Lords for further scrutiny.
This was the final opportunity for MPs to make changes before the Bill left the Commons—and some important developments took place.
Key Concessions Secured
Following pressure from disabled people’s organisations, charities and MPs, the government agreed to several important safeguards, including:
- A guarantee that any changes to PIP eligibility will be co-produced with disabled people and experts, as part of a formal review process.
- A public consultation this summer before any new PIP rules are introduced. These rules will not apply to existing claimants.
- A new legal duty to publish a disability employment strategy within six months of the Bill becoming law. This strategy must include measurable targets to reduce the disability employment gap and must be developed in consultation with disabled people.
- A commitment to complete the PIP assessment review by Autumn 2026, led by Social Security Minister Stephen Timms and supported by a taskforce with a majority of disabled members.
Real-Term Increases for Some—But Not All
The government continues to promote the Bill as an “income boost” for millions. It has pledged:
- An above-inflation increase in Universal Credit’s standard allowance—worth around £725 extra per year by 2029/30.
- Protection for people already receiving the health element of UC, and for new claimants who meet the ‘Severe Conditions Criteria’ or are terminally ill. These groups will have their benefits uprated with inflation.
- A new exemption from reassessments for around 200,000 people with the most severe conditions.
However, this support does not apply to everyone. Most people with ME/CFS or Long Covid who do not meet the strict criteria for “severe lifelong conditions” will not benefit from these guarantees. In fact, if the proposed changes to PIP and the removal of the Work Capability Assessment go ahead, many risk losing both PIP and extra elements of Universal Credit.
Who Stands to Benefit (Potential ‘Winners’):
- People on Universal Credit with no current health-related element
Will receive a real-terms rise in the standard allowance—worth around £725 more per year by 2029/30—the largest uplift since 1980. - Existing UC claimants receiving the health element
Their top-up will be protected and uprated with inflation, even after the Work Capability Assessment is abolished. - People with severe, lifelong, or terminal conditions
Around 200,000 claimants meeting the Severe Conditions Criteria will be exempt from reassessments and receive ongoing protected support. - Disabled people involved in policy shaping
A new co-production taskforce will have a majority of disabled members and influence the future of PIP assessments and disability employment strategy. - Those trying work under the new Right to Try Guarantee
Claimants will be able to test employment opportunities without triggering immediate reassessments or loss of support.
Who Is at Risk (Potential ‘Losers’):
- New claimants who don’t meet the ‘severe conditions’ threshold
Many people with ME/CFS or Long Covid may fall outside protected groups and lose access to extra support if they don’t meet new, stricter eligibility rules. - PIP claimants with fluctuating or invisible conditions
The future PIP system may narrow access by requiring 4+ points in a single activity, disadvantaging those with complex, varied limitations. - Disabled people with lower care or mobility needs
People currently qualifying under multiple moderate needs (e.g. 2+2 points) may be excluded under the revised rules—leading to loss of PIP and UC health elements. - Younger claimants or those newly disabled
These groups will be subject to the full impact of reform from 2026 onward, with fewer safeguards in place. - Low-income families where one member has a non-protected condition
Could see household income drop by over £10,000 per year, especially if both PIP and UC health top-ups are lost.
What Happens Next?
The Bill will now move to the House of Lords, where peers will be able to suggest further amendments. The ME Association will continue to campaign to protect people with ME/CFS or Long Covid from harm—and to push for fairer, more inclusive reform.
We’ll be publishing more information in the coming weeks, including how you can help by contacting your MP or submitting your views to the government’s PIP consultation.
Ella Smith
Welfare Rights Consultant,
The ME Association
