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Starmer’s attempt at welfare reform roils his party, capping a troubled first year in office

  • In a rare Commons revolt, Sir Keir Starmer's government was forced into a U-turn on welfare reforms, leaving nearly £5 billion in spending shortfall.
  • Driven by fiscal targets, the Department for Work and Pensions aimed to save £5 billion annually through stricter PIP rules, risking income cuts for 3.2 million by 2030.
  • Data shows over 120 Labour MPs threatened to defeat the welfare bill, with 35 backing a revised amendment supported by disability charities, now costing about £3 billion.
  • Following the U-turn, the £5 billion shortfall forces the autumn budget to consider tax increases, as Starmer's concessions halve savings and create fiscal pressure.
  • Starmer's internal revolt and welfare U-turn heighten political risks, with future battles and voter shifts to radical parties like Reform UK predicted ahead of May's Welsh and Scottish elections.
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Returning to power a year ago after a large electoral success, the Labour Party suffered in the polls from its fiscal measures deemed unfair and the expectations of the British after 14 years of falling their standard of living. Report in Wales, shaken by the disappearance of industries providing jobs. ...

·Brussels, Belgium
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Associated Press News broke the news in United States on Tuesday, July 1, 2025.
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