Labour heads off welfare revolt with big concessions

Sir Keir Starmer has suffered the biggest blow to his leadership since coming into power a year ago after he was forced to abandon a key plank of his controversial benefit cuts in order to get them through parliament.

- DAVID MADDOX, MILLIE COOKE

While his welfare reform bill passed its second reading by 335 votes to 260 - a majority of 75 - the prime minister still suffered the largest rebellion of his premiership so far, with 49 Labour MPs voting to reject the legislation.

It came after a last-ditch announcement that plans to restrict eligibility for personal independence payments (PIP) – which had been the central pillar of the government's reforms - were being dropped.

The chaotic move came just 90 minutes before MPs were due to vote on the Universal Credit and Personal Independence Payment Bill for the first time, when disability minister Sir Stephen Timms announced that changes to PIP originally planned for November 2026 will not take place until after his review of the benefit has concluded.

Sir Keir had already been forced into a U-turn last week when more than 130 Labour MPs signed an amendment that would have effectively have killed the bill off. Among the concessions announced then was a plan to impose tougher eligibility rules only on future PIP claimants, leaving existing recipients unaffected. Critics said this would create a two tier system, while the government's own impact assessment said the change would push 150,000 people into poverty.