
Starmer vows to press on with welfare reform as he takes blame for U-turn
But he added his Government would 'come through it stronger' as he vowed to 'reflect' on what needed to be done 'to ensure we don't get into a situation like that again'.
Despite the setback, which saw changes to the personal independence payment (Pip) stripped out of his welfare legislation, Sir Keir said on Thursday his Government was 'pressing on with welfare reform'.
Answering questions at the launch of Labour's NHS plan, he said: 'It is important we reform the system. Welfare isn't working.'
The Prime Minister went on to praise disabilities minister Sir Stephen Timms, who is now leading a review of Pip, saying he was 'a thoroughly decent man of huge integrity that we can have faith in to do the review and make the changes that are necessary'.
Sir Keir's U-turn saw planned changes to Pip eligibility put off until after Sir Stephen has completed his review of the benefit next autumn, leaving only changes to universal credit to go forward.
That decision has caused a fiscal headache for Chancellor Rachel Reeves, with the £4.8 billion of savings the reforms were expected to deliver now unlikely to materialise.
Economists have warned that this is likely to mean further tax rises in the autumn, and the Prime Minister did not rule out the possibility on Thursday.
Ms Reeves has previously promised she would not need to repeat the £40 billion tax raid she set out in October 2024.
Asked if he would repeat that commitment, Sir Keir said: 'No prime minister or chancellor is going to write a budget in advance, but we did really tough stuff in that budget last year.'
But he added that last year's budget had already done much of the 'heavy lifting' on repairing the public finances.
The Chancellor also declined to 'speculate' about tax rises ahead of the budget, but told broadcasters there was 'a cost to the welfare changes that Parliament voted through this week and that will be reflected in the budget'.
Ms Reeves herself appeared alongside Sir Keir and Health Secretary Wes Streeting at the launch of the NHS plan on Thursday, a day after she had appeared visibly tearful in the Commons during Prime Minister's Questions.
The Chancellor told broadcasters it had been related to a 'personal issue', while Sir Keir gave her his full backing, adding: 'I think it's just fantastic she's here and, as I say, none of this would be happening if she hadn't taken the decisions that she's taken.'
Questions about the Chancellor's future had sparked a sharp fall in the value of UK government bonds on Wednesday, but the markets rallied on Thursday morning following repeated reassurances she was safe in Number 11.
But Conservative shadow chancellor Sir Mel Stride said the scenes in the Commons over the past week had left bond markets 'twitchy' about the Government and 'their ability to actually grip things like spending going forward'.

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South Wales Guardian
31 minutes ago
- South Wales Guardian
Ministers face backbench calls to widen access to top tier of sickness benefits
Labour backbencher Graeme Downie has proposed a welfare reform Bill amendment, so universal credit claimants with Parkinson's or multiple sclerosis who cannot work do not face repeated medical assessments to receive a payout. If MPs back his amendment, patients with 'evolving' needs who cannot work could also qualify for a higher rate of benefits. The Government's Bill has already cleared its first Commons hurdle at second reading, after work and pensions minister Sir Stephen Timms vowed not to restrict eligibility for the personal independence payment (Pip), with any changes coming in only after a review of the benefit. To meet his promise, ministers have had to table amendments to their own draft new law, to remove one of its seven clauses, which MPs will debate next Wednesday. Universal credit claimants with Parkinson's 'are already possibly struggling financially', Mr Downie told the PA news agency ahead of the debate. He added: 'The cost of living with a condition like Parkinson's can be very high. 'You may well require or need additional support.' The Dunfermline and Dollar MP said patients who struggle with their motor control might buy pre-chopped vegetables or chicken. 'Those things are expensive, so if you're already on universal credit and you're struggling, being able to do that significantly impacts your health, it significantly impacts your ability to live properly,' he continued. As part of the Government's reforms, the Department for Work and Pensions has proposed a new 'severe conditions criteria' for universal credit. Claimants in this category will be entitled to a higher rate of the benefit, and will not be routinely reassessed to receive money. To qualify, claimants must have limited capability for work or work-related activity (LCWRA) and symptoms which 'constantly' apply. Mr Downie's amendment would expand these criteria to claimants with 'a fluctuating condition'. It would cover 'conditions like Parkinson's but also multiple sclerosis, ME (myalgic encephalomyelitis), long Covid and a whole range of other conditions where, you know, in the morning things could be really good and in the afternoon things could be really bad, and even hour by hour things could change', he said. 'I felt it was necessary to table an amendment to really probe what the Government's position is on this, and ensuring that people with Parkinson's and conditions like that are not excluded from even applying and being considered.' Mr Downie's proposal has backing from 23 cross-party MPs. Juliet Tizzard, external relations director at Parkinson's UK, said: 'Criteria in the Bill say that a new claimant for the universal credit health payment will have to be 'constantly' unable to perform certain activities to qualify. 'This doesn't work for people with Parkinson's, whose symptoms change throughout the day. 'People with Parkinson's and other fluctuating conditions like multiple sclerosis will be effectively excluded from getting all the financial support they need. 'The Government has responded to our call and withdrawn the damaging restrictions to Pip. 'Now, they must do the same with the universal credit health element. The health of many people with Parkinson's is in their hands.'

Rhyl Journal
31 minutes ago
- Rhyl Journal
Ex-Labour MP Sultana says she will set up new party with Jeremy Corbyn
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South Wales Guardian
31 minutes ago
- South Wales Guardian
Ex-Labour MP Sultana says she will set up new party with Jeremy Corbyn
Zarah Sultana – who had the Labour whip suspended last year – said she was resigning from Sir Keir Starmer's party and would 'co-lead the founding of a new party' with the ex-Labour leader. In a statement posted on X, Ms Sultana, who represents Coventry South, said that the project would also involve 'other independent MPs, campaigners and activists across the country'. She said that 'Westminster is broken but the real crisis is deeper' and the 'two-party system offers nothing but managed decline and broken promises'. Today, after 14 years, I'm resigning from the Labour Party. Jeremy Corbyn and I will co-lead the founding of a new party, with other Independent MPs, campaigners and activists across the country. Join us. The time is now. Sign up here to stay updated: — Zarah Sultana MP (@zarahsultana) July 3, 2025 She added: 'A year ago, I was suspended by the Labour Party for voting to abolish the two-child benefit cap and lift 400,000 children out of poverty. 'I'd do it again. I voted against scrapping winter fuel payments for pensioners. I'd do it again. Now, the Government wants to make disabled people suffer; they just can't decide how much.' It comes in the same week as Sir Keir U-turned on plans for welfare reform in the face of a rebellion from Labour backbenchers. Ms Sultana urged people to 'join us', and also accused the Government of being an 'active participant in genocide' in Gaza in her statement. "That grouping [of Independents] will come together, there will be an alternative" Ex Labour Leader @jeremycorbyn says he is "here to serve the people" as he outlines plans for a new party #Peston — Peston (@itvpeston) July 2, 2025 Referring to the next general election, Ms Sultana said: 'In 2029 the choice will be stark: socialism or barbarism'. Ms Sultana was one of seven MPs who had the Labour whip suspended last summer when they supported an amendment to the King's Speech which related to the two-child benefit cap. Four of the seven had the whip restored earlier this year but Ms Sultana was not among them. John McDonnell, another of the suspended MPs who has not had the whip restored, posted on X that he was 'dreadfully sorry' to see Ms Sultana quit the party. 'The people running Labour at the moment need to ask themselves why a young, articulate, talented, extremely dedicated socialist feels she now has no home in the Labour Party and has to leave,' he said. Mr Corbyn led Labour from 2015 to April 2020, stepping down after the party's loss at the 2019 general election. He was suspended from Labour in 2020 after he refused to fully accept the Equality and Human Rights Commission's findings that the party broke equality law when he was in charge, and said antisemitism had been 'dramatically overstated for political reasons'. He was blocked from standing for Labour at last year's general election and expelled in the spring of 2024 after announcing he would stand as an independent candidate in his Islington North constituency, which he won with a majority of more than 7,000. Last year, Mr Corbyn formed the Independent Alliance with other independent members of the Commons. Asked on ITV's Peston programme on Wednesday whether that group could turn into an official party, Mr Corbyn said that they have 'worked very hard and very well together' over the last year in Parliament. He added: 'There is a thirst for an alternative view to be put.' 'That grouping will come together, there will be an alternative,' he later said. Responding to Ms Sultana's statement, a Labour spokesperson said: 'In just 12 months, this Labour Government has boosted wages, delivered an extra four million NHS appointments, opened 750 free breakfast clubs, secured three trade deals and four interest rate cuts lowering mortgage payments for millions. 'Only Labour can deliver the change needed to renew Britain.'