Labour Government Survives Welfare Vote After Last-Minute U-Turn
The Labour government has narrowly avoided a humiliating defeat after securing a 75-vote majority on its controversial welfare bill, following last-minute concessions to internal party rebels. The vote, which took place Tuesday evening, left many MPs frustrated by the chaotic process and confused about what they had just approved.
The Universal Credit and Personal Independence Payment (Pip) Bill, initially introduced to tighten eligibility and reduce benefits spending, has now been significantly watered down. Key reforms, including stricter Pip criteria, were delayed following widespread pushback from Labour backbenchers and disability rights groups.
Government Backs Down Amid Party Revolt
Facing a potential rebellion by over 120 MPs, Ministers scrapped plans to impose new Pip rules before a comprehensive review concludes. Disability Minister Sir Stephen Timms confirmed in the Commons that changes to Pip would be postponed and evaluated after the review, expected in 2026.
This marked the second major concession in a week. Earlier, the government reversed its proposal to freeze health-related Universal Credit rates for existing claimants.
Despite these U-turns, 49 Labour MPs still voted against the bill, citing its rushed nature and potential to harm disabled people. Emma Lewell-Buck, one of the rebels, called the vote “absolute, utter chaos,” adding that neither MPs nor the public fully understood the implications of the bill.
Starmer’s Leadership Under Pressure
The last-minute reversals and internal party revolt have once again raised questions about Sir Keir Starmer’s authority. Critics argue the repeated U-turns show weak leadership and poor legislative planning, particularly from Work and Pensions Secretary Liz Kendall, who defended the bill despite acknowledging mistakes.
“This process has been unedifying,” said Labour MP Paula Barker. “While I appreciate the changes, the government’s handling has been incoherent.”
Meanwhile, Chancellor Rachel Reeves now faces financial pressures. The scrapped Pip reforms were projected to save the government £5 billion, which may now require tax hikes or spending cuts elsewhere. Helen Miller of the Institute for Fiscal Studies warned the episode “intensifies speculation” about future tax increases.
Disability Groups React
Reaction from disability advocates was mixed. James Taylor from Scope said that while the delay in stricter Pip rules was welcome, the bill still posed risks to future claimants. Mencap CEO Jon Sparkes called the government’s listening a “positive step,” though others like the MS Society labelled the concessions “panicked” and insufficient.
The government initially launched its reform package in March, proposing cuts to Pip eligibility and a freeze on some Universal Credit elements, while pledging £1 billion in support for those with disabilities seeking employment. Ministers argued the current system creates dependency and needs to be restructured for long-term sustainability.
However, Labour MPs and campaigners countered that the proposed changes would push vulnerable people into poverty and increase hardship.
What’s Next?
MPs will revisit the bill on Wednesday, July 9, when it returns for further scrutiny in the House of Commons. Many Labour MPs have already warned that unless the government honors its promises on Pip and benefit protection, they may withdraw support.
The unfolding situation suggests continued instability within the Labour Party on welfare policy. And with public trust in welfare reform already fragile, the government faces a daunting challenge in presenting a united front before the bill becomes law.
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