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Starmer abandons key welfare reforms

Daily Post

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July 02, 2025

SIR Keir Starmer has been forced to abandon a key plank of his welfare reform package in the face of a Labour rebellion.

The Government has shelved plans to restrict eligibility for the personal independence payment (Pip) and any changes will now only come after a review of the benefit.

The climbdown came just 90 minutes before MPs were due to vote for the first time on the Universal Credit and Personal Independence Payment Bill.

It will cause a major headache for Chancellor Rachel Reeves as the welfare squeeze was originally meant to save £4.8 billion a year, which was subsequently reduced to £2.3 billion when the Bill was first watered down last week.

Postponing any changes to the eligibility criteria for Pip means it is now uncertain how much the reforms will save from the soaring welfare bill.

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