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7/1/2025, 11:52:49 PM
Sir Keir Starmer gutted his controversial welfare bill on Tuesday as he fended off a full-scale Labour rebellion in chaotic scenes in the House of Commons, leaving a multibillion-pound hole in UK public finances.
Amid fears of imminent defeat, Starmer authorised a last-minute climbdown. Experts said the emasculated bill, which passed a parliamentary vote on Tuesday evening, could even lose the government money overall after it was initially intended to generate net savings of £5bn.
The changes stripped out a clause that had been intended to generate the bulk of welfare savings by tightening eligibility criteria for the personal independence payment (Pip), the main disability benefit.
Labour MPs were astonished by the move, which leaves Chancellor Rachel Reeves facing the prospect of raising taxes to cover the £5bn she had expected to save from the welfare bill.
Kemi Badenoch, Conservative leader, said on X: “This is an utter capitulation. Labour’s welfare bill is now a TOTAL waste of time. It effectively saves £0, helps no one into work, and does NOT control spending.”
Even after Starmer in effect dismantled the bill, there was still a significant Labour rebellion on its crucial second reading, which was carried by 335 to 260, a government majority of 75. A total of 49 Labour MPs voted against the bill, along with 100 Tories, 70 Liberal Democrats and 12 independents.
Amid fears of imminent defeat, Starmer authorised a last-minute climbdown. Experts said the emasculated bill, which passed a parliamentary vote on Tuesday evening, could even lose the government money overall after it was initially intended to generate net savings of £5bn.
The changes stripped out a clause that had been intended to generate the bulk of welfare savings by tightening eligibility criteria for the personal independence payment (Pip), the main disability benefit.
Labour MPs were astonished by the move, which leaves Chancellor Rachel Reeves facing the prospect of raising taxes to cover the £5bn she had expected to save from the welfare bill.
Kemi Badenoch, Conservative leader, said on X: “This is an utter capitulation. Labour’s welfare bill is now a TOTAL waste of time. It effectively saves £0, helps no one into work, and does NOT control spending.”
Even after Starmer in effect dismantled the bill, there was still a significant Labour rebellion on its crucial second reading, which was carried by 335 to 260, a government majority of 75. A total of 49 Labour MPs voted against the bill, along with 100 Tories, 70 Liberal Democrats and 12 independents.
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