Keir Starmer's welfare bill passes after ‘shambolic' climbdown

Times

6 hours ago

Sir Keir Starmer has suffered a blow to his authority after being forced to abandon a key plank of his welfare reforms in the face of a mass rebellion by Labour MPs.
The prime minister ditched cuts to disability benefits that had prompted scores of MPs to rebel after Labour whips concluded that the government risked losing a vote in the Commons.
Rachel Reeves, the chancellor, now faces a £4.5 billion gap to fill with tax rises or cuts elsewhere after a retreat that means the package of welfare reforms may end up increasing spending.
Louise Murphy, of the Resolution Foundation, said that the government had 'basically eradicated all of the savings they had hoped to make this decade' after retreats on personal independence payments (PIP) and incapacity benefits, while promising an increase to basic levels of universal credit. 'When you add all of that together it amounts to a slight increase in spending in 2029-30,' Murphy said.
• Labour rebels now know that if they push, Starmer will back down
Ministers promised not to change the rules on disability benefits until a review that will take more than a year to conclude and has promised not to aim at cost-cutting.
Starmer still faced the biggest revolt of his premiership despite the climbdown, as 49 Labour MPs voted against a bill that still cuts incapacity benefits for new claimants.
Labour MPs in the Commons said the government's handling of the reforms was 'crazy'. Paula Barker, a left-wing Labour MP, attacked an 'incoherent and shambolic' retreat, saying it was 'the most unedifying spectacle I have ever seen'.
A blame game quickly spread within government, as No 10 was accused of ignoring warnings of a growing rebellion while Reeves was criticised for another failure of political judgment in attempting to force through cuts.
One government source said backbenchers had sent No 10 a clear message: 'You want to be strong but there is a point where being strong tips into looking stupid.'
Liz Kendall, the work and pensions secretary, was blindsided by the retreat after opening a debate in the Commons by vowing to press ahead and insisting that the government 'must not and will not duck' reform of benefits.
Starmer had already been forced to retreat at the weekend after 126 Labour MPs refused to support changes that would have made it harder to claim PIP, the main disability benefit.
A promise to apply the rules only to new claimants failed to win over enough MPs, however, as Labour backbenchers lined up during a Commons debate on Tuesday to criticise 'Dickensian' cuts and brand the reforms a 'dog's breakfast'.
Marie Tidball, a backbencher with severe congenital disabilities, gave the most impassioned attack on a reform that 'would exclude eligibility for those who cannot put on their underwear, prosthetic limbs or shoes without support'.
In the Commons Kendall insisted that the reforms would go ahead in November next year, despite criticism from colleagues. She appeared to be unaware that No 10 and the whips were discussing further concessions as she was speaking.
Faced with such determined opposition, Starmer opted for a full retreat to avert a serious risk of defeat, promising to scrap changes to PIP entirely.
Sir Stephen Timms, the disability minister, announced the U-turn from the dispatch box, saying he had 'heard concerns' from backbenchers who had repeatedly questioned why changes were being made before a wider review of PIP criteria, which he has launched. Timms promised that the government would 'only make changes to PIP eligibility activities and descriptors following that review'.
Critics of the bill initially did not believe the scale of the government's retreat, expressing bafflement at Timms's comments.
The string of concessions means that halving the rate of incapacity benefits for new claimants is the only policy in the government's bill to survive unchanged.
The decision to drop PIP cuts means a £4.5 billion saving banked at the spring statement will have to be found elsewhere, adding to pressure on Reeves after a £1.5 billion U-turn on cuts to winter fuel payments.
Although Timms has been told to ensure the benefits system is 'sustainable', he has also been told to 'co-produce' recommendations with disability groups, and told MPs that his review 'is not intended to save money'. Uncertainty over future policy means the Office for Budget Responsibility will be unable to account for any potential savings.
Jon Sparkes, of the disability charity Mencap, praised the retreat, saying 'disabled people should not have to pay to fix black holes in the public finances'.
Helen Whately, the shadow work and pensions secretary, criticised Starmer for 'cowardice' and warned of 'the beginning of the end' for Reeves. 'The economic credibility of this government has collapsed,' she said. 'Labour have abandoned their flagship welfare reforms with a bill which now achieves nothing.'
Kendall was said to have discussed options for the climbdown before her appearance in the Commons. However, at that stage the scale of the rebellion was not clear.
Some have blamed Reeves for imposing a savings target and then worsening the rebellion in her attempts to win MPs round. 'She's shown very little political acumen,' one senior Labour source said.