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Warnings of tax rises after Downing Street welfare U-turn
- The UK government, led by Prime Minister Sir Keir Starmer, performed a late-night U-turn on welfare reforms after widespread backbench opposition on June 27, 2025, in London.
- This reversal followed a significant rebellion by over 100 Labour MPs against proposed cuts to Personal Independence Payment and the health-related element of Universal Credit, which had restricted eligibility and affected 370,000 recipients.
- The government announced concessions to protect existing claimants, with changes to PIP applying only to new claimants from November 2026, while maintaining income protection in real terms for current health element recipients.
- Think tanks warned these concessions, costing up to £3 billion, more than halve the expected medium-term savings of £5 billion and increase pressure on Chancellor Rachel Reeves's budget balancing, raising prospects of tax rises in the autumn budget.
- The U-turn has intensified backbench frustration with Number 10, prompted calls for party relations reset, and signaled ongoing fiscal challenges with funding details and a full economic forecast to be presented at the autumn budget.
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32 Articles
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A humbling week for Keir Starmer
If the concessions offered by Downing Street to Labour MPs on Friday aren’t enough to limit the rebellion and get the welfare package through on Tuesday, this government is over. A party elected almost exactly a year ago with a working majority of 165 would have come to the end of its real, effective, working life. The stakes were that high, which is why the series of meetings conducted by Keir Starmer, Angela Rayner, Rachel Reeves and Liz Kenda…
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Total News Sources32
Leaning Left5Leaning Right4Center7Last UpdatedBias Distribution44% Center
Bias Distribution
- 44% of the sources are Center
44% Center
L 31%
C 44%
R 25%
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