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PM Takes Blame for Welfare U-Turn as He Gives Full Backing to Chancellor

  • On Tuesday, the Labour government avoided defeat by making last-minute concessions on welfare reforms in the House of Commons.
  • This followed intense backlash from over 120 Labour MPs opposing tighter Personal Independence Payment criteria and cuts to Universal Credit.
  • The government reversed planned PIP changes until after an ongoing review, reducing expected savings by about £5 billion and sparking speculation over Chancellor Reeves's future.
  • Sir Keir Starmer admitted his administration did not engage properly with MPs, took full responsibility for the U-turn, and gave his full backing to a tearful Chancellor Reeves.
  • The Prime Minister acknowledged the difficulties of recent days but remained optimistic that the government would come through the challenges in a reinforced position, while financial markets reacted positively to repeated affirmations regarding Reeves's role.
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The Independent broke the news in London, United Kingdom on Wednesday, July 2, 2025.
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