Tories accuse Starmer of ‘humiliating U-turn' as climbdown over welfare bill confirmed

The Guardian

8 hours ago

Update:
Date: 2025-06-27T07:30:50.000Z
Title: Kiran Stacey
Content: Good morning. Political journalism, like all reporting, has a weakness for cliche and at Westminster there seems to be an unofficial rule that any use of the word U-turn must be proceeded by the adjective 'humiliating'. The problem with this is that most U-turns are only mildly embarrassing, and turn out to be tactically advantageous. But this time – by accident or design – the Tories do seem to be using the word appropriately.
No 10 has performed a colossal U-turn on the universal credit (UC) and personal independence payment (Pip) bill, the legislation that will slash sickness and disability benefits. It was only confirmed in the early hours this morning, in an exchange of letters. has the details here.
In welfare matters, many policy decisions are motivated by the need to reduce costs decades ahead and that was always one of the main aims of this bill (as the Institute for Fiscal Studies analysis yesterday pointed out). The bill still functions as a long-term, cost-saving measures.
But it was also intended to save money for the Treasury during this parliament. In that respect, the bill has been more or less gutted. For Rachel Reeves, the chancellor, this is a disaster.
The U-turn has various big consequences, about which we will learn more today.
Keir Starmer now seems to have guaranteed that the UC and Pip bill will pass on Tuesday night – but the rebellion will not disappear entirely. Some Labour MPs are still planning to vote against.
Reeves is now under more pressure than ever to raise taxes in the autumn budget.
People who will need sickness and disability benefits in the future are still due to lose out, by significant amounts, compared to what they might get if they were claiming benefits now. Ministers will still have huge difficulty defending this. The Tories are accusing the government of creating a 'two-tier benefits system'.
Keir Starmer's authority in his party has been badly damaged. We can't tell yet how significant this will turn out to be, but his personal approval ratings have collapsed since the general election and, at the very least, this will make recovery harder.
Back to 'humiliating U-turn', and this is what the Conservatives said about the move in a statement early this morning. Helen Whately, the shadow work and pensions secretary, said:
This is another humiliating U-turn forced upon Keir Starmer.
With the sickness benefits bill set to reach £100bn by 2030 the country needs action. But Labour has lurched from a bad plan to a next-to-nothing plan.
The latest 'deal' with Labour rebels sounds a lot like a two-tier benefits system, more likely to encourage anyone already on benefits to stay there rather than get into work.
We made a serious offer to Keir Starmer in the national interest if he was willing to grip the challenge of getting the welfare bill down and more people into work - making savings to avoid putting up taxes. But instead, he's done yet another U-turn.
Here is the agenda for the day.
10.05am: Keir Starmer is expected to speak at the Welsh Labour conference in Llandudno.
Morning: Kemi Badenoch is on a visit in Essex.
11.30am: Downing Street holds a lobby briefing.
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