Politics

Keir Starmer makes last minute welfare U-turn to dodge Labour rebellion but backlash erupts

Published on July 10, 2025

In a bid to calm unrest within his own party, Keir Starmer has been forced to offer major concessions on controversial welfare reform plans, hoping to head off a potential revolt from Labour MPs. The government has now agreed to backtrack on key parts of the proposals after days of mounting pressure from within the party.

Late on Thursday night, reports emerged that Starmer had caved in to internal demands by dropping some of the most contested changes to Personal Independence Payments (PIP) and the Universal Credit health top-up, at least for current claimants. Sky News revealed that one senior Labour backbencher who had previously signed an amendment to block the reforms was now satisfied, saying: “I think the concessions will be positively received, and I expect to vote with the government now.”

One of the MPs leading the pushback against the bill admitted the move could be enough to get it through its second reading, saying: “They’ve offered massive concessions, which should be enough to get the bill over the line.” Another figure added: “We always wanted to protect the most vulnerable, not to destroy the bill or cause the government trouble. We always hoped there would be an off-ramp, and that’s what we have now.”

The original plan had sparked alarm, with proposals set to take effect from November 2026 requiring individuals to score a minimum of four points in one specific activity to qualify for the daily living element of PIP. Previously, points could be spread across a range of daily tasks. The changes would have affected both new and existing claimants, prompting fears of severe consequences for many disabled people.

But under the revised plan, it’s understood existing claimants will now be spared. Only new applicants would be subject to the tighter rules, and the government has promised further consultation on the most controversial disability benefit cuts. According to Birmingham Live, this shift is being seen as a significant compromise, aimed at easing tensions within the party ranks.

Universal Credit was also in the firing line. The initial proposal would have frozen the health element at £97 a week for current recipients and slashed it to £50 for new claimants. But sources now suggest this cut will no longer apply to those already receiving the benefit, marking another backpedal in the face of growing dissent.

Still, not everyone’s convinced. Labour MP Richard Burgon said, “These changes may make a very bad bill less awful, but the vast majority of cuts remain and it still forces hundreds of thousands into poverty.” He made it clear the latest tweaks are “nowhere near good enough.”

Meanwhile, criticism has also come from the other side. Shadow chancellor Mel Stride accused Starmer of making another “screeching U-turn” and slammed the concessions as a “completely unfunded spending commitment”. He warned that “Labour’s welfare chaos will cost hardworking taxpayers”.

MP Ian Byrne questioned the logic behind the reforms, asking: “How can someone diagnosed with a condition in a few months be less disabled than someone diagnosed with it already and not be eligible for help?” He didn’t mince his words either, saying: “This bill will still drive hundreds of thousands of disabled people into poverty. I will be voting against this shameful piece of legislation and I urge colleagues to do the same.”

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