UK Government Drops Welfare Bill from King's Speech After Labour MP Revolt

The prime minister's first attempt to overhaul the welfare system, including curbs on some health-related benefits, sparked a revolt among Labour MPs and forced an embarrassing government retreat in June 2025.

Ministers responded with two reviews to develop fresh ideas and a few steps to encourage more people into work.

Sources say the government is not prepared to introduce a new welfare bill to Parliament. As a result, it will play no role in Wednesday's proceedings, when the King outlines the government's agenda for the coming year.

This pushes any fresh welfare legislation to mid-2027 at the earliest, even though the area ranks high among government priorities.

Some Labour MPs who compelled the prime minister to back down last time may welcome the delay. Others could cite it as evidence of the prime minister's faltering grip on the government's agenda.

A government source noted reforms proceeding without new laws, such as "right to try" rules that let people with health conditions take jobs without automatic benefit reassessments. The government also promises paid work placements for 18- to 21-year-olds out of work or education for more than 18 months.

The Timms Review poses a key hurdle. Commissioned last year as part of the retreat on benefit cuts, it examines the Personal Independence Payment system. Sir Stephen Timms, a government minister, leads it alongside groups representing disabled people.

The review has yet to deliver findings. An interim report should appear around July, with the final version later this year.

In parallel, Alan Milburn, ex-health secretary under Tony Blair, wraps up his report on young people not in work or study. Work and Pensions Secretary Pat McFadden commissioned it, and it could land in coming weeks.

Milburn has stirred debate with remarks like Britain is "writing off" a generation of youth with routine mental health issues.

"The system we inherited is not fit for purpose, and we are determined to change it and spread opportunity as the best way to tackle welfare dependency," a government source said. "The pieces of work we've commissioned will inform legislation we bring forward."

This King's Speech could lock in legislative plans for a successor prime minister, barring a Labour choice aimed at upending the agenda.