Starmer survives rebellion as welfare cuts pass key vote

Daily Mail​

02-07-2025

Sir Keir Starmer has been handed a new major headache by his own MPs tonight as 49 opposed his plan to cut welfare payments despite the bill being gutted to avoid it being thrown out altogether. Ministers had taken drastic action as furious MPs lined up in the Commons to attack the plan to make it harder to claim Personal Independence Payments (Pip) and health-related universal credit.
But even after a pledge to remove the Pip elements entirely, pending a review expected to take until next summer, almost 50 refused to back the shell of what was left. The total of 49 was higher than the 44 who had backed a 'reasoned amendment' to the bell - a piece of Commons machinery which would have killed it off completely. Labour MP Clive Efford, who voted against the Bill and co-signed an amendment that would have halted it at second reading, said the Government's late minute U-turn was not a good look to the public.
The MP for Eltham and Chislehurst said: 'I've never seen a Bill in front of the House being salami sliced bit-by-bit like this, in order to get it over the line. It's definitely not the way to produce legislation. 'I mean I don't know what disabled people looking on will have made of today's process, but it didn't put the Government in a good light.' He said he was unsurprised the Government won the vote, but said the Government had been sent a message about the strength of opposition.
'The Government's got a huge majority, it takes a lot to defeat. It's nonetheless a significant number of us made a stand, which I mean needed to be done.' Those voting against it included the former shadow minister for the disabled, Marsha de Cordova. Vicky Foxcroft, who quit as a whip last week because of concerns about the bill, voted for it in its weakened state.
Despite being titled the Universal Credit and Personal Independence Payment Bill, the legislation now contains no measures relating to Pip. The respected IFS think-tank said that accounted for £2.6billion of the savings the government had hoped for by 2029-30. Curbs to the health element of Universal Credit should have eased spending by £1.7billion, but that was due to be offset by £1.8billion on raising the basic rate. Researcher Tom Waters said that left an additional cost of £100million by 2029-30.
Agonisingly for Chancellor Rachel Reeves, the delay almost certainly means the Office for Budget Responsibility cannot 'score' the savings in time for her Budget. As a result the black hole in the government's books is likely to be even bigger than feared. Concerns were already running high that Ms Reeves will have to hike taxes to stabilised the public finances. In 12 hours of carnage at Westminster, the PM's carefully-assembled truce with rebels dramatically disintegrated.
Facing the threat of a massive revolt, Sir Keir opted make yet another major concession just 90 minutes before the vote. Ministers pledged that changes to disability handouts will not be finalised until after a review - meaning that the package as it stands will actually make the current system more expensive than before. Sir Keir - who is days away from marking the first anniversary of his election landslide - had already agreed that the benefits curbs would only apply to new claimants.
There was mocking laughter in the chamber as Social Security Minister Stephen Timms was asked how much the proposals would save now, and merely replied that the government would 'set out figures in the usual way'. Despite the humiliating manoeuvres, when the vote was held 44 Labour MPs still backed the fatal amendment and others abstained - although it was comfortably defeated by 328 to 149. Shortly afterwards the Bill cleared second reading stage by 335 to 260, majority 75. It will now be scrutinised at committee.
A clearly crestfallen Work and Pensions Secretary Liz Kendall tried to put a brave face on the shambles afterwards, acknowledging there were 'lessons to be learned' but the party was '100 per cent' behind the PM. 'I think people are 100 per cent behind a Prime Minister that secured the first Labour Government in 14 years,' she said. But rebel Labour MP Brian Leishman said ministers should still withdraw the Bill despite it passing second reading.
The MP for Alloa and Grangemouth had also voted in favour of the cross-party amendment that would have stopped the Bill before second reading. He said: 'Today was a prime example in how not to legislate. 'A shambolic afternoon with policy being made up off the cuff and on the notion of promises to come.