Keir Starmer set capitulate to Labour rebels as PM makes 'major concessions' over welfare cuts

Keir Starmer says he will be speaking to Labour backbenchers amid rebellion fears
GB NEWS
Jack Walters

By Jack Walters


Published: 26/06/2025

- 21:02

Updated: 27/06/2025

- 01:27

The Prime Minister made the changes after being locked in negotiations with Labour rebels

Sir Keir Starmer is expected to capitulate to 120 backbench Labour MPs by offering "major concessions" to stave off the biggest rebellion of his premiership.

The Prime Minister, who earlier this week defended his proposed plan to cut £5billion from Britain's ballooning benefits bill, had been locked in negotiations with mutinous MPs today but admitted he was open to changing his welfare bill.


Starmer's top team had spent days attempting to halt the number of MPs coming out against the proposed cuts to Personal Independence Payments and Universal Credit.

However, Labour's "master list" of rebels continued to increase, leaving the Prime Minister at risk of facing a humiliating rebellion next Tuesday.

Starmer is believed to have agreed to water down his proposed welfare cuts by protecting PIP payments for all existing claimants.

The change ensures that only new claimants will be subject to tougher rules, meaning 370,000 people will not lose out.

Starmer also offered to allow existing claimants to keep the health element of Universal Credit.

Ministers are even expected to fast-track a £1billion support plan that was originally scheduled to come into place in 2029.

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Sir Keir Starmer

Sir Keir Starmer is expected to capitulate to the rebels demands

PA

However, the Prime Minister's decision to buckle to the rebels ushers in yet more fears about tax rises in the autumn.

Financial experts expect the Prime Minister's concessions could shave off up to £2billion from the savings the Treasury expected to claw back by tightening the rules.

Chancellor Rachel Reeves could be forced to hike taxes to fill the black hole created by Starmer's concessions.

Reeves had even factored the welfare cuts into her Spring Statement in March, providing a cornerstone for Labour's claims about turning the economy around.

Rachel ReevesRachel Reeves will be delivering her Spending Review today PA

Speaking in the House of Commons earlier today, the Prime Minister said he wanted to "see reform implemented with Labour values and fairness".

He added: "That conversation will continue in the coming days, so we can begin making change together on Tuesday."

Despite appearing to stave off a rebellion from Labour moderates, dozens of left-wing MPs could still vote against the Prime Minister's revamped welfare changes.

Norwich South MP Clive Lewis, who served as Shadow Defence Secretary under Jeremy Corbyn, said: "Every MP will have to weigh up the deal for themselves. Alas, this smacks of a face saving exercise more than it does doing right by my sick & disabled constituents. No impact assessment. No co-production with disabled groups. No deal. I’ll still be voting against."

Richard Burgon, a member of the Socialist Campaign Group who lost the Labour whip after rebelling over the two-child benefit cap, added: "These changes may make a very bad Bill less awful. But the vast majority of cuts remain and it still forces hundreds of thousands into poverty.

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"Nowhere near good enough. I'll vote against the Bill. The Government shouldn't be balancing the books on the backs of disabled people."

Meanwhile, Tory Shadow Chancellor Mel Stride pre-emptively described Starmer's U-turn as a sign of "weakness".

He said: “If confirmed this is the latest in a growing list of screeching u-turns from this weak Labour Government.

"Under pressure from his own MPs Starmer has made another completely unfunded spending commitment."

Mel Stride

Shadow Chancellor Mel Stride

GETTY

Shadow Work & Pensions Secretary Helen Whately added: “This is another humiliating u-turn forced upon Keir Starmer

“With the sickness benefits bill set to reach £100billion by 2030 the country needs action. But Labour has lurched from a bad plan to a next-to-nothing plan.

“The latest ‘deal’ with Labour rebels sounds a lot like a two-tier benefits system, more likely to encourage anyone already on benefits to stay there rather than get into work.

“We made a serious offer to Keir Starmer in the national interest if he was willing to grip the challenge of getting the welfare bill down and more people into work - making savings to avoid putting up taxes. But instead, he's done yet another U-turn.”

Rebels are said to have been emboldened by the Prime Minister's previous decision to reverse his planned cuts to Winter Fuel Payments.

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Labour MP for Leeds East, Richard Burgon, speaks during a protest in Whitehall, London, during the nurses strike

Labour MP for Leeds East, Richard Burgon, speaks during a protest in Whitehall, London, during the nurses strike

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However, critics warn that the spotlight being placed on No10's U-turn shenanigans will mean that the Prime Minister faces fury for pursuing controversial policies while exhausting significant political capital.

Starmer had been warned he risks facing a "humiliating" confidence vote by taking on Labour rebels in next week's crunch Commons vote.

Allies of the Prime Minister had even tried to dissuade disgruntled MPs that defeat next week would have resulted in a leadership contest and potentially a General Election.

The latest YouGov MRP poll puts Reform UK on track to win the most seats if a General Election was held today, falling just 55 seats short of an overall majority.