
Starmer prepares welfare concessions amid backlash over benefit cuts
Sir Keir Starmer is preparing a climbdown as a major rebellion builds against his planned benefit cuts, Downing Street has suggested.
The prime minister will be locked in talks on Thursday with backbench Labour MPs to find concessions to help him stave off an embarrassing defeat.
After more than 120 of his own MPs signed an amendment threatening to kill his welfare reform bill, a Downing Street source said ministers are 'talking to colleagues about the bill and the changes it will bring'.
But, after days of appearing to rule out changes to the legislation, which aims to cut the welfare bill by £5bn, the source told reporters that 'we want to start delivering this together on Tuesday'.
And Douglas Alexander said on Thursday that, having read the rebel amendment, 'the first thing that strikes you is that everyone agrees welfare needs reform and that the system is broken'.
The trade minister told Sky News: 'Everyone recognizes you're trying to take people off benefits and into work, because that's better for them and also better for our fiscal position.
'Where there is some disagreement at the moment is on the issue of how you give implementation to those principles.'
Mr Alexander said a second reading vote like Tuesday's was usually on the principles of legislation, but the rebellion has forced ministers to consider 'how to give implementation to those principles'. 'So given the high level of agreement on the principles, the discussions over the coming days will really be about the implementation of those principles,' he said.
It came after Labour MPs called for 'regime change' in Downing Street, with some elected last summer lashing out at the 'over-excitable boys' in Sir Keir's top team.
Many blame the PM's chief of staff, Morgan McSweeney, for ignoring the concerns of backbenchers
'We are all very happy that we have a leader who's so respected around the world… we just think he needs fewer over-excitable boys in his team,' one MP told The Times.
The total number of Labour MPs who have signed the amendment against Sir Keir's welfare cuts hit 126 on Wednesday, despite rebels having been warned with potential de-selections and the government's potential collapse if they support it.
Efforts to win over rebels had been led by health secretary Wes Streeting, chancellor of the Duchy of Lancaster Pat McFadden, business secretary Jonathan Reynolds, and work and pensions secretary Liz Kendall.
Asked what concessions could be offered to convince rebels to back the government, Angela Rayner sought to reassure backbenchers that they would not be expected to betray the party's traditional values.
"I'm not going to get into that on your show tonight," the deputy prime minister said in an interview on ITV's Peston programme.
"Those discussions are ongoing around making sure that the welfare reforms that we're bringing in support people into work who need that, and we're putting a huge amount of investment into doing that, but also protecting the most vulnerable."
She acknowledged that "a lot of people are very scared about these changes" but added: "I haven't changed my Labour values and we're not expecting our benches to do anything that isn't in check with them.
"What we want to do is support people, and that is the crucial bit around these reforms of what Labour are trying to achieve, and we're discussing that with our MPs."
The plans restrict eligibility for personal independence payment (Pip), the main disability payment in England, and limit the sickness-related element of universal credit. The Government hopes the changes will get more people back into work and save up to £5 billion a year.
Existing claimants will be given a 13-week phase-out period of financial support, a move seen as a bid to head off opposition by aiming to soften the impact of the changes.
The fact so many Labour MPs are prepared to put their names to the "reasoned amendment" calling for a change of course shows how entrenched the opposition remains.
One backbencher preparing to vote against the Bill said: "A lot of people have been saying they're upset about this for months. To leave it until a few days before the vote, it's not a very good way of running the country.
"It's not very grown up."
They said that minor concessions would not be enough, warning: "I don't think you can tinker with this. They need to go back to the drawing board."
According to the government's impact assessment, the welfare reforms as a whole could push an extra 250,000 people, including 50,000 children, into relative poverty.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Guardian
24 minutes ago
- The Guardian
Norway's €19bn software company Visma picks London for IPO
The €19bn Norwegian software company Visma has picked London over Amsterdam for its planned flotation next year, giving a much-needed boost to the London stock market. The company, which makes accounting, payroll and HR software products for 2.1 million customers across Northern Europe and Latin America, has yet to make a final decision but London is the frontrunner, it is understood. Visma is thought to have picked London for its initial public offering (IPO) because of its deep capital markets and the presence of more investors who focus solely on buying UK stocks compared with those who purchase only Dutch equities, in news first reported by the Financial Times. It would be a rare win for London's stock exchange, which has been hit by an exodus of big names such as the drugmaker Indivior, which recently opted for a sole listing on the US Nasdaq, and the Anglo-German travel group Tui, which last year switched to a sole listing in Frankfurt. In 2024, the London market lost 88 companies that delisted or transferred their primary listing elsewhere, the most since the 2008-09 financial crisis, according to analysis by EY. The decision is contingent on implementation of reforms by the UK government and the London Stock Exchange, to offset complications caused by Brexit. Visma, headquartered in Oslo, is 70%-owned by the London-based private equity firm Hg Capital. Hg, the UK's second-biggest private equity firm behind the Jersey-based CVC Capital Partners, decided two decades ago to focus on software investments. HG helped to take Visma private from the Oslo stock exchange in 2006 at a valuation of nearly £330m, when it stepped in as a white knight investor after Visma received a hostile bid from the UK software group Sage. Since then, Visma has grown every quarter, and expanded through 350 bolt-on acquisitions. It has 16,400 employees and reported revenues of €2.8bn last year, with nearly 12% organic growth. It made underlying profits of €893m. Other investors include Singapore's sovereign wealth fund GIC, the Singaporean private equity firm Intermediate Capital Group, Canada's CPP Investments and the Texas-based private equity group TPG. Visma's management team, led by the chief executive, Merete Hverven, and group employees together own 6.4%. She joined the company in 2011 and took the helm in March 2020. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Visma, the largest privately owned software company in Europe, previously considered listing in 2023 but amid market volatility decided to raise funds from private investors instead. Visma and Hg declined to comment.


Reuters
25 minutes ago
- Reuters
Pearson and Google team up to bring AI learning tools to classrooms
LONDON, June 26 (Reuters) - Pearson (PSON.L), opens new tab has entered a multi-year partnership with Alphabet's (GOOGL.O), opens new tab Google cloud service, providing students with AI learning tools that also make teachers' jobs easier, the British education company said on Thursday. The tie-up will focus on creating personalised learning tools powered by Google's advanced artificial intelligence models for students in primary and secondary school. The tools will adapt to each student's pace and needs, while also helping teachers track performance and tailor lessons, the companies said in a statement. Pearson Chief Executive Omar Abbosh said AI could help reshape school education by replacing uniform teaching methods with personalised learning paths tailored to individual students. Pearson has also signed multi-year AI-focused partnerships with Microsoft (MSFT.O), opens new tab and Amazon's (AMZN.O), opens new tab cloud computing services, as part of its efforts to personalise learning and offer more digital education tools.


The Independent
27 minutes ago
- The Independent
Lioncroft Wholesale CEO: 'Technology drives us forward, but let's not forget the risks'
We all recognise the many, many ways technology enables us to innovate and scale. Virtually every UK business relies upon the latest technologies to keep the wheels of industry turning. Technology is how we manage our systems, process orders, handle data, support our people and communicate with the outside world. Technology is the very backbone of our business, leaving us woefully unprepared for if, and when, things go wrong. And go wrong they have, in recent weeks. It has been impossible to miss the news headlines screaming loud about cyber attacks which have wreaked havoc on UK household names such as M&S, the Co-op and Harrods, to name just three. M&S was first struck in April, and as we go to press in June, the business is still in recovery mode with a return to normal not expected until July. Their once-full shelves are now dotted with availability gaps – the ultimate nightmare for a retailer – while their previously booming online sales were brought to an abrupt halt as the company's systems were hacked and disabled. As if this weren't enough, M&S must also brace itself for class action data lawsuits after private data, including millions of customers' household information, telephone numbers and dates of birth, was leaked as a result of the attack. The impact financially is staggering. The losses to the British high street stalwart look set to be unprecedented – Bank of America Global Research predicted the losses to equate to £43m per week, and estimated to run to more than £400m in total – acting as a harsh wake-up call for every business to think more about the technology it relies upon. And this is without taking into consideration the reputational damage an incident like this can cause. The PR spin about technology – always on, always working – has made it a business essential. After all, technology never has an off day, it doesn't make mistakes. It doesn't get ill, tired or burnout. It doesn't get distracted from the task at hand by an unscheduled meeting or an unexpected phone call. It completes the task efficiently and accurately, and moves on to the next. Until it doesn't. So how can it go wrong? Stuart Machin, CEO of M&S, described the security breach as the result of 'social engineering' which came about from 'human error' via a 'third party' although this has yet to be confirmed by the company's internal investigation. In other words, we are the weakest link. We open emails, click on links, share passwords, leave laptops on trains… the list goes on. While it is people that operate the technology, there will always be risks, it is unavoidable. As M&S continue to repair, the smart businesses will now be using this incident as a learning exercise. Every business, regardless of size and sector, is a potential target, so what can we learn from this? Are we protected? How would we respond? These are the questions we must ask ourselves. The fact is, when it comes to cyber protection, the work is never done. A constant stream of new threats are defeated by even newer solutions, and protecting your business goes far beyond strong passwords and the latest virus protection. The experts all agree that businesses need multi-layers of protection to secure their systems, combined with insurance. Are you thinking ahead? We're told that M&S had carried out a cyber attack simulation the previous year and could tap into the learnings from this, responding quickly and effectively. Its business continuity plan kicked in, minimising further damage. Yes, cyber insurance is essential, but as many business owners have found, it is costly, complex and limited with what it will deliver. Explore the options carefully and with caution. While we focus on our systems, of course we must also focus on our people. It is our responsibility to equip staff with the knowledge they need to recognise threats and the tactics used by cyberhackers to ensure your business has a culture of security awareness. There is no doubt that technology is our friend, but let's never forget that it can quickly turn to work against us, as well as for us. Dr Jason Wouhra OBE is CEO of Lioncroft Wholesale, one of the UK's leading food and drink wholesalers. He is also Chancellor of Aston University and Chair of Unitas Wholesale, the UK's largest wholesale buying group.