Keir Starmer makes significant compromise to pass welfare reform bill

Keir Starmer had to give up plans to cut disability benefits in order to secure the passage of his welfare bill through the Commons. Despite facing a rebellion within his own party, the bill passed its second reading, but not without causing tensions and raising questions about the government's handling of the situation.

Jul 2, 2025 - 00:41
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Keir Starmer makes significant compromise to pass welfare reform bill

Keir Starmer had to drop disability benefit cuts from his welfare bill to win over Labour MPs. The bill passed its second reading, but tensions arose between No 10 and Labour backbenchers. The government will have to find an additional £2.5bn in savings. The rebels were mainly from the left of the party. The changes to disability payments will be delayed until a review is completed in autumn 2026.

Liz Kendall, the work and pensions secretary, faced humiliation after a U-turn on the Pip changes. Despite the concessions, plans to increase universal credit rates and protect the severely ill and disabled will proceed. The government's welfare reforms will not make any net savings in the crucial year of 29-30.

According to the source: The Guardian.

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