Welfare reforms risk ‘deep and lasting split' in Labour

The Herald Scotland

6 hours ago

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I was a Labour minister: Sir Keir you must U-turn on benefits cuts
A third of Scottish Labour MPs now back rebel amendment against welfare reforms
More than 120 Labour MPs — including a third of the party's Scottish contingent — are set to back a 'reasoned amendment' in Tuesday's crunch vote, effectively derailing the flagship legislation.
Ministers are currently locked in talks with backbenchers in a bid to see off the rebellion.
The flagship bill aims to restrict eligibility for PIP in England and limit sickness-related payments under Universal Credit, as part of a package aimed at saving up to £5 billion a year.
It would also increase the basic rate of Universal Credit, in what the Government claims is the most significant uplift in out-of-work support since the 1980s.
But campaigners warn that 3.2 million disabled people could lose out, with up to 400,000 pushed into poverty.
A coalition of ten major disability charities has condemned the plans, while polling shows widespread public concern.
Mr Wilson said the Government's failure to communicate the bill's benefits had left MPs exposed to 'fear and suspicion', accusing ministers of prioritising headlines about saving money over careful, consultative reform.
'There is an unanswerable case to be made for reform,' he wrote. 'But it has to be built with far more care and credibility from the starting point of social justice, rather than working backwards from headlines about saving billions.'
He added: 'There's nothing wrong with U-turns… Labour suffered no damage from reversing the Winter Fuel Allowance cut. On the contrary, large numbers of natural supporters heaved a sigh of relief.'
So far, 12 of Scottish Labour's 37 MPs have signed the amendment, including Irene Campbell (North Ayrshire and Arran), Martin Rhodes (Glasgow North), Elaine Stewart (Ayrshire South), and Tracy Gilbert (Edinburgh South West).
Ms Campbell told The Herald she had been considering the issue 'for quite some time' and was swayed by feedback from constituents. 'People are speaking to me about it when I'm in the supermarket or when I'm out and about. It's an area of real concern,' she said.
Although she praised aspects of the bill, such as efforts to move people into work and the Universal Credit uplift, she warned that ministers must 'slow down and reconsider' elements relating to disability payments.
Asked if she could be won round, Ms Campbell said: 'If they took into account what the amendment was asking for, then yes, I think everybody who signed it would be content.' But she acknowledged the amendment could effectively kill the bill: 'I know, it's a tricky one.'
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The growing revolt has prompted intensive efforts from Downing Street to limit the damage. A No 10 source told media: 'There is broad consensus across the party… we're talking to colleagues about the bill and the changes it will bring.'
On the early morning media round on Thursday, Trade minister Douglas Alexander said there was 'a high level of agreement' on the principles behind the bill.
But he acknowledged disagreements over implementation. 'The effect of what's happened with this reasoned amendment being tabled is that it's brought forward the discussion of how to give implementation to those principles,' he said.
Mr Alexander played down reports of internal tensions, including criticism of Sir Keir's chief of staff, Morgan McSweeney. 'I'm much less interested in the gossip about SW1 than whether this legislation works on the streets,' he said.
Some MPs blame Mr McSweeney for misjudging the politics of welfare reform and are calling for a shake-up in Downing Street. The Times reported that some backbenchers believe 'regime change' is needed.
One Labour MP told the Press Association that ministers had left it too late to address concerns: 'It's not a very good way of running the country. It's not very grown-up.'
Another MP said minor tweaks would not suffice: 'I don't think you can tinker with this. They need to go back to the drawing board.'
Labour insiders say the Prime Minister is reluctant to appear weak by performing another U-turn so soon after reversing plans to scrap Winter Fuel Payments.
But Mr Wilson said the political cost of ploughing ahead would be greater.
'Who cares if the right-wing media mocks?' he wrote. 'A year into the job, [Starmer] can either liberate himself from the last of the big mistakes from these early months — or else, win or lose, create a deep and lasting split in his own ranks that should never have been forced upon them.'