Universal Credit and Personal Independence Payment Bill Committee: New Clause 8

Parliament voted on 9 July 2025 to reject New Clause 8 of the Universal Credit and Personal Independence Payment Bill, which would have required the Universal Credit health element for claimants with limited capability for work and work-related activity (LCWRA) to rise in line with inflation. The clause also included a technical provision extending any such duty to Northern Ireland. It was defeated by 443 votes to 130, Division 263. The practical effect of the clause, had it passed, would have been to protect the real-terms value of the UC health element for existing LCWRA claimants, those meeting severe conditions criteria, and terminally ill claimants. Without inflation-uprating enshrined in law, the value of that element can be allowed to erode over time as prices rise. Supporters argued the clause was necessary to shield some of the poorest and most disabled people from effective cuts; opponents, including the Labour government, maintained that the Bill as amended already provided sufficient protection and that ministers needed flexibility over benefit levels. The vote split sharply along party lines, though with a significant Labour rebellion. Thirty-three Labour MPs and three Labour and Co-operative MPs voted for the clause against 298 and 37 respectively from those same parties voting no. The Liberal Democrats backed the clause unanimously with 64 votes, joined by all nine SNP MPs, all four Plaid Cymru MPs, all four Green MPs, and seven independents. Conservatives voted no in full, as did Reform UK and the Democratic Unionist Party. The clause was tabled by John McDonnell, the former shadow chancellor and MP for Hayes and Harlington, who told the committee he could not vote for legislation that cuts benefits to some of the poorest people he represents.