Keir Starmer has been warned he could face a rebellion from as many as 150 Labour MPs over Rachel Reeves's plans to slash benefits by £5billion a year.
The Prime Minister, who is attending the G7 summit in Canada, claimed the welfare system was not “working for taxpayers” just weeks after his Chancellor confirmed Personal Independence Payments (PIP) was one of the benefits being slashed.
In a significant challenge to Starmer's leadership, more than 150 Labour MPs signed a private letter indicating their opposition.
Despite the in-party conflict, the Prime Minister did not suggest that he would be offering concessions to angry Labour backbenchers.
Keir Starmer faces down 150 Labour rebels over £5bn benefit cuts
Getty
The exact framework for the annual cuts will be published before it faces a pivotal vote, which will take place before Parliament breaks for summer recess next month.
Starmer said: “We’ve got to reform the welfare system. Everybody agrees with that proposition. So we’ve got to do that basic reform. It doesn’t work for those that need support and help into work and it doesn’t work for the taxpayer.
“So it’s got to be reformed. The principles remain the same, those who can work should work. Those who need support in to work should have that support in to work which I don’t think they are getting at the moment.
Starmer went on to say that the reforms will still mean that those who cannot work are fully supported.
LATEST DEVELOPMENTS:
Starmer went on to say that the reforms will still mean that those who cannot work are fully supported
Getty
He added: “Those who are never going to be able to work should be properly supported and protected. And that includes not being reassessed and reassessed. So they are the principles, we need to do reform and we will be getting on with that reform when the Bill comes.”
“Well, we have got to get the reforms through and I have been clear about that from start to finish. The system is not working, it’s not working for those that need support, it’s not working for taxpayers. Everybody agrees it needs reform, we have got to reform it and that is what we intend to do.”
The Treasury will lose £5billion in savings from the package annually, which Reeves used to restore her fiscal headroom in the spring statement.
Without them, the Chancellor remains at risk of breaking her own fiscal rules set just five months earlier.
Reeves is adamant that she will not back down further
Getty
Reeves is adamant that she will not back down further, despite her recent U-turn on cuts to the Winter Fuel Allowance.
The Chancellor said: "It is important we reform the way the welfare state works so there is a welfare state there for people.
"We are the only developed country where the number of people in the labour market is lower than it was before Covid. The number of economically inactive people of working age is rising."
Some critics say that cuts have not gone far enough and will result in the welfare budget increasing by billions in the future.
Most Read
