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Starmer’s attempt at welfare reform roils his party, capping a troubled first year in office

  • In a rare Commons revolt, Sir Keir Starmer's government was forced into a U-turn on welfare reforms, leaving nearly £5 billion in spending shortfall.
  • Driven by fiscal targets, the Department for Work and Pensions aimed to save £5 billion annually through stricter PIP rules, risking income cuts for 3.2 million by 2030.
  • Data shows over 120 Labour MPs threatened to defeat the welfare bill, with 35 backing a revised amendment supported by disability charities, now costing about £3 billion.
  • Following the U-turn, the £5 billion shortfall forces the autumn budget to consider tax increases, as Starmer's concessions halve savings and create fiscal pressure.
  • Starmer's internal revolt and welfare U-turn heighten political risks, with future battles and voter shifts to radical parties like Reform UK predicted ahead of May's Welsh and Scottish elections.
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Associated Press News broke the news in United States on Tuesday, July 1, 2025.
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