
Starmer seeks to win round welfare rebels with promise of ‘fairness'
Prime Minister Sir Keir Starmer is in talks with Labour rebels over concessions to save the Government's welfare reform package.
The talks ahead of Tuesday's Commons showdown come after 126 Labour MPs publicly backed a move to block it.
Sir Keir told MPs he wanted the reforms, which will restrict access to sickness and incapacity benefits, to demonstrate 'Labour values of fairness'.
The Prime Minister told MPs there was 'consensus across the House on the urgent need for reform' of the 'broken' welfare system.
'I know colleagues across the House are eager to start fixing that, and so am I, and that all colleagues want to get this right, and so do I,' he said.
'We want to see reform implemented with Labour values of fairness.
'That conversation will continue in the coming days, so we can begin making change together on Tuesday.'
The Universal Credit and Personal Independence Payment Bill has its second reading on Tuesday, the first opportunity for MPs to vote on it.
If the legislation clears its first hurdle, it will then face a few hours' examination by all MPs the following week – rather than days or weeks in front of a committee tasked with looking at the Bill – with a plan for it to clear the Commons a little over a week later on July 9.
Ministers have said they will listen to suggestions to improve the legislation, but opposition appears entrenched and the swift timetable for the Bill could add to critics' concerns.
Commons Leader Lucy Powell told MPs: 'As the House would expect, the Government actively engages with parliamentary opinion throughout a bill's passage, as we are doing intensively with the Universal Credit and Personal Independence Payment Bill.'
But some Labour critics of the Bill said there were no concessions the Government could make which would persuade them to support it.
Liverpool West Derby MP Ian Byrne said: 'No tweaks or concessions can save the disability cuts Bill.
'It's an awful piece of legislation that will cause huge and lasting damage to my disabled constituents and those across the UK.'
York Central MP Rachael Maskell said the Bill 'cannot and must not be saved'.
'Any concessions will still cause harm to disabled people,' she said.
'The only option is to withdraw the Bill, rethink and start to rebuild trust with disabled people.'
Overnight, six more Labour MPs added their names to the rebel amendment that would halt the legislation in its tracks.
The reasoned amendment argues that disabled people have not been properly consulted and further scrutiny of the changes is needed.
It is clear that the UC & PIP Bill cannot and must not be saved. Any concessions will still cause harm to disabled people. The only option is to withdraw the Bill, rethink and start to rebuild trust with disabled people. Not to is not Labour.
— 💙Rachael Maskell MP (@RachaelMaskell) June 26, 2025
The new names take the total number of Labour backbenchers supporting the amendment, tabled by Treasury Select Committee chairwoman Dame Meg Hillier, to 126 out of a total of 162 backers from all parties.
The plans restrict eligibility for the 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.
The Daily Telegraph reported that potential concessions being considered include a commitment to speed up payment of support to help people back into work and offering assurances that reviews of policies in this area will be published.
Meanwhile, The Times reported some MPs opposed to the plans had blamed Sir Keir's chief of staff, Morgan McSweeney and suggested the time had come for 'regime change' in Downing Street.
Asked if Sir Keir had confidence in his chief of staff, the No 10 spokesman would not comment on Downing Street staffing matters.
Analysis by the Institute for Fiscal Studies (IFS) think tank indicated that 800,000 fewer working-age people are expected to receive a Pip daily living award in 2029–30 as a result of the reforms.
The tighter criteria are set to lead to 430,000 new applicants – who would have received an award without reforms – receiving no award, and 370,000 existing claimants losing out following reassessment.
NEW: Government's benefit reforms could reduce annual spending by around £11 billion in the long run – but still leave health-related benefit bill far above pre-pandemic levels.
Read @TomWatersEcon, @LatimerEduin and @matthewoulton 's new report: https://t.co/8aP99eVQHS
— Institute for Fiscal Studies (@TheIFS) June 26, 2025
Most of the 800,000 losers will receive £3,850 per year less in Pip.
The 2.2 million existing claimants of the health element of universal credit who are expected to still be claiming in 2029–30 are estimated to see a £450 real decline in their support in that year because of the freezing of the payment.
There are also set to be 700,000 new claimants who will typically receive £2,700 a year less than they would have done under the current system, the IFS said.
It will be well into the 2030s before the reforms are fully rolled out and, in the long-term, the savings could amount to around £11 billion a year, the IFS said.
A little over a quarter of the public are supportive of the proposed reforms, according to polling published on Thursday.
Of 2,004 people surveyed by More in Common over the weekend, just 27% said they supported the planned changes to the benefits system and half (51%) said they believe the cuts would worsen the health of disabled people.
A similar proportion (52%) said the cuts would increase pressure on the NHS while six in 10 said the Government should look at alternative cost-saving measures instead.
Liberal Democrat leader Sir Ed Davey said the Government should pull the Bill and 'go back to the drawing board' instead of 'cutting vital support from thousands of vulnerable people'.
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Leader Live
12 minutes ago
- Leader Live
Welfare reforms: What concessions has the Government made?
Here, the PA news agency takes a look at what the changes are and how Labour MPs and disability groups have reacted. – What had the Government originally planned? In March, reforms to the welfare system – aimed at encouraging more people off sickness benefits and into work – were announced. The Government said the changes, including restricting access to the main disability benefit known as Pip (personal independence payment) and the sickness-related element of universal credit (UC), were expected to make welfare savings of £4.8 billion by 2029-30. With around 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year', the Government argued the current situation was unsustainable. An impact assessment published alongside the Bill included estimates that changes to Pip entitlement rules would see about 800,000 people lose out, with an average loss of £4,500 per year. Changes to UC were expected to see an estimated 2.25 million current recipients of the health element impacted, with an average loss of £500 per year. Overall, as a result of the changes, it was estimated some 250,000 more people, including 50,000 children, across Great Britain were likely to fall into relative poverty after housing costs by the end of the decade. – What concessions have been made? In a late-night letter to MPs, Work and Pensions Secretary Liz Kendall conceded two changes she said would 'strengthen the Bill'. In recognition of the 'uncertainty and anxiety' caused by the proposed changes, she said all current Pip recipients would keep their benefits, saying only new claims from November 2026 will come under the tightened eligibility requirements. An impact assessment had stated that 370,000 current recipients were set to lose Pip entitlement across England and Wales. Ms Kendall also vowed all those currently receiving the UC health element, as well as new claimants meeting the severe conditions criteria, will have their incomes 'fully protected in real terms'. The Work and Pensions Secretary has also promised a review of the Pip assessment, led by social security and disability minister Sir Stephen Timms, which will have input from disabled people 'to ensure the benefit is fair and fit for the future'. – What are disability groups saying? Mikey Erhardt, from Disability Rights UK, accused the Government of 'playing politics with our lives', insisting the Bill must still be pulled. He said the changes will mean 'a benefits system where future generations of disabled people receive less support than disabled people today' and added that, in making the original announcement of cuts, the Government had 'prioritised balancing its books over improving the lives of disabled citizens'. Mr Erhardt added: 'Despite seemingly rowing back on some of the worst aspects of its plans, the Government is still attempting to slash billions of pounds from a system that doesn't provide enough support as it stands.' The MS Society said the Government was simply 'kicking the can down the road and delaying an inevitable disaster', and urged MPs 'not to be swayed by these last-ditch attempts to force through a harmful Bill with supposed concessions'. Food bank network Trussell welcomed the 'significant' concessions but said the proposals 'still present a bleak future for future claimants and still risk placing the Government's commitments to end the need for emergency food and tackle poverty in serious jeopardy'. – What are Labour MPs saying? Dame Meg Hillier, one of the leading rebel voices, described the concessions as 'a good deal' involving 'massive changes' to protect vulnerable people and involve disabled people in the design of future reforms. She said: 'It's encouraging that we have reached what I believe is a workable compromise that will protect disabled people and support people back into work while ensuring the welfare system can be meaningfully reformed.' Health minister Stephen Kinnock said he is confident the welfare reforms – being brought under the Universal Credit and Personal Independence Payment Bill – will pass a vote in the Commons on Tuesday in the wake of the concessions. But some Labour MPs are still not satisfied, with Nadia Whittome saying the concessions are 'nowhere near good enough', vowing to still vote against the Bill unless 'serious' proposals are made to 'protect the dignity of disabled people'. Speaking to the Today programme on BBC Radio 4, she said MPs she had spoken to 'are sticking to their position because we understand that we are answerable to our constituents'. Ms Whittome added: 'If the Government doesn't pull the Bill, doesn't consult properly with disabled people and come back to MPs with a serious proposal that protects the dignity of disabled people, I will vote against and I will be far from the only one.'

Leader Live
13 minutes ago
- Leader Live
Government climbdown on welfare Bill marks third U-turn this month
Here, the PA news agency looks at three major policy changes this month. – Welfare reforms The Universal Credit and Personal Independence Payment Bill was put in motion to change who could qualify for certain disability and sickness benefits. The package restricted eligibility for Pip, the main disability payment in England, and cut the health-related element of Universal Credit, in a bid to save £5 billion a year by 2030. But a backbench rebellion of more than 120 Labour MPs forced Sir Keir into a U-turn. In an attempt to appease those MPs, planned cuts will now only affect future applications for benefits, rather than existing claimants. – Winter fuel payment The Government scrapped winter fuel payments for pensioners who do not receive pension credits or other means-tested benefits just weeks after it came to power in July. It was described as a 'necessary and responsible' move by Chancellor Rachel Reeves, who argued it would help fill the £22 billion fiscal black hole. The Government said that changing the threshold for the payment would save £1.5 billion each year. But at the start of this month, the Prime Minister announced that the Government would reinstate winter fuel payments for millions of pensioners. The payment, worth up to £300, will be restored to the vast majority of pensioners who previously received it because anyone with an income of under £35,000 a year will now get the payment automatically. The Government said the change will cost £1.25 billion. – Grooming gangs Sir Keir has also U-turned on holding a national inquiry into grooming gangs. In January, the Prime Minister accused those calling for an inquiry of 'jumping on a far-right bandwagon' after tech entrepreneur Elon Musk criticised the UK for its lack of action on the issue. But following the recommendations of a report by Baroness Louise Casey into the scale of group-based child sexual abuse, Sir Keir announced in June that there would be a full national statutory inquiry. The Prime Minister had initially only promised five local inquiries in the most prevalent areas for grooming gangs. Asked about the change, Sir Keir said: 'I've never said we should not look again at any issue.'


The Independent
20 minutes ago
- The Independent
Starmer's welfare U-turn is short term gain for long term pain
Sir Keir Starmer was staring down the barrel of a long weekend on the phone to Labour rebels, pleading with them to come around before Tueday's crunch vote. The prime minister was hoping to stave off a rebellion from backbench MPs over his plans to make life significantly more difficult for some of their most hard up constituents. So it will have been a relief for the PM when lead rebel Dame Meg Hillier accepted his £1.5bn U-turn as a 'positive outcome', all but guaranteeing his welfare bill will survive Tuesday's vote. Despite the late concession, the prime minister's U-turn has not solved his problems, but simply stored them up for another day. While he will now avoid the embarrassing sight of a prime minister losing a key vote just a year after winning a 174-seat majority, the fallout from the welfare row will quietly chip away at his authority. First, it has emboldened Labour backbenchers. Especially among new intake MPs, there was a reluctance to speak out against the Labour leader for fear of being blacklisted from government jobs in the future, or even having the whip withdrawn. The impact of the PM's benefit cuts would have had such a devastating impact on disabled people that many felt they simply could not hold their tongues. They have now learned that a public rebellion can go a long way in winning the prime minister's attention after months of griping that he is not engaged enough with his MPs and their concerns. Secondly, it makes the prime minister look weak. The U-turn followed the same pattern as previous climbdowns over winter fuel payments and Labour's £28bn green investment plan. On winter fuel he spent months telling voters he was right to have stripped the payments from millions of pensioners, that he was taking 'tough decisions' and would not back down. Even when a U-turn looked inevitable, Sir Keir stuck to his guns and pressed ahead with the decision. Then, having squandered any political capital or goodwill that may have been gained from a concession to pensioners, he changed course, fudging the rationale and refusing to accept that he made the wrong decision in the first place. It will be the same with benefit cuts. As well as weakening the PM in the eyes of his own backbenchers, Sir Keir's third U-turn in a month weakens him in the eyes of voters - and Nigel Farage is set to pounce. The Reform UK leader has already sought to point the prime minister as devoid of ideas and convictions, presenting his insurgent right-wing party as a strong alternative government in waiting. So much of what Sir Keir, driven by chief of staff Morgan McSweeney, already does is aimed squarely at countering the rising threat of Reform. Getting hundreds of thousands of people off welfare and back into work, slashing the benefit bill, was another of those policies. But, after walking back from large parts of the policy, Sir Keir will leave Reform-minded voters yet again asking why they would back a Farage-lite Labour Party when they can instead vote for the real thing. Thirdly, the prime minister's chaotic approach to his latest U-turn means Labour - once a party which railed furiously against 'unfunded spending commitments' - has a £1.5bn black hole in its spending plans. It will need to be filled somehow, and the only options are spending cuts elsewhere or yet more tax hikes. Care minister Stephen Kinnock was the first minister out defending the policy change, while refusing to say how it would be paid for. Labour will now face months and months of questions and speculations about exactly which taxes will rise to pay for the U-turn, derailing much of the rest of the party's agenda. And lastly, the U-turn has solved a short-term problem but created a potentially larger long-term one. Campaigners have warned that the changes create a two-tier system for personal independence payment (Pip) claimants, with those starting claims in future treated differently to those on Pip currently. Sir Keir frequently criticised the Conservatives for what he called 'sticking plaster politics'. But in tackling his biggest rebellion yet, the prime minister has merely placed a sticking plaster over a major crack, and it is only a matter of time before it comes undone.