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Labour Braces for Biggest Rebellion of Starmer Era over Welfare Reform
- On July 1, 2025, UK MPs debated and voted on Labour's controversial welfare reform bill in the House of Commons amid internal party rebellion.
- The vote followed Labour's scaled-back plans to cut disability benefits after over 120 MPs threatened to oppose earlier proposals announced in March.
- Key concessions ensured current claimants of Personal Independence Payments would not be affected, leading some rebels to support the bill while others, especially from Greater Manchester, remained opposed.
- Labour’s Secretary responsible for Work and Pensions, Liz Kendall, announced that the party had carefully considered feedback and implemented favorable adjustments, while Stephen Timms highlighted that the changes are intended to assist individuals unable to work.
- The bill's passage would reduce welfare spending savings to about half the initial £5 billion a year target and reflects ongoing challenges Starmer faces balancing fiscal goals with party unity.
68 Articles
68 Articles
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U.K. government borrowing costs spiked on Wednesday, after a contentious welfare bill revealed fractures in the Labour government. The yield on the benchmark 10-year gilt rose by 22 basis points in early afternoon trade. Prime Minister Keir Starmer did not answer a question about the future of Finance Minister Rachel Reeves’s position in his government during an exchange in Parliament on Wednesday. U.K. government borrowing costs spiked on Wedne…
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