Starmer abandons key welfare reforms
Keir Starmer has suffered a crushing blow to his authority after rebel Labour MPs forced him to effectively abandon his flagship welfare reform proposals after chaotic scenes in the House of Commons.
Just 90 minutes before the vote, and several hours into a heated debate, the government announced it was pulling a key measure of the bill and abandoning key changes to the controversial Personal Independence Payments (PIP) regime until a review of the entire system has been conducted.
The u-turn means the bill – which passed in a vote by 335 to 260 – will now provide no cost savings, leaving Chancellor Rachel Reeves with billions of pounds to find in either spending cuts or tax rises. Labour MP Paula Barker attacked the “incoherent and shambolic” decision, slamming “the most unedifying spectacle I have ever seen.”
‘Capitulation’
Tory leader Kemi Badenoch blasted Labour’s “utter capitulation” and branded the welfare bill “a total waste of time.” Her colleague Tom Tugendhat said: “This government has died and left us with the bill.”
A previous u-turn on plans to make it harder for people to access sickness and disability benefits, designed to save £5bn, was abandoned following an organised revolt by Labour MPs.
The decision to scrap swathes of the welfare reform agenda – something Starmer had described as absolutely necessary – raises serious questions about the Chancellor’s fiscal headroom and approach to the public finances.