U.K. PM Starmer faces rebellion despite concessions on welfare reforms

The U.K.’s Labour government of Prime Minister Keir Starmer faces a rebellion from within, with party’s MPs set to oppose a watered-down welfare bill in the House of Commons on Tuesday (July 1, 2025) evening. The current version of the bill includes concessions introduced by Mr Starmer last week to avoid the prospect of at least 126 MPs voting against the government via a “reasoned amendment” designed to stop the bill. However, a second such amendment, with the backing of at least 39 MPs, was scheduled for a vote on Tuesday (July 1, 2025) evening.

At the heart of the concessions in the Universal Credit (UC) and Personal Independence Payment (PIP) bill was an agreement to not change disability payments for those already receiving it but limiting future claims.The health related segments of the UC would also not be frozen but rise along with inflation for existing benefit recipients.

The projections for the revised bill reduce the number of those who will be pushed into poverty from the initial estimate of 250,000. However, 150,000 people were still projected to be pushed into poverty by 2030 as per the new economic modelling assumptions.The amount of savings for the exchequer had come down from £ 4.8 bn per year under the original bill to £2 bn per year.

Early on in the debate during the ‘second reading’ of the bill on Tuesday afternoon, Labour MP Rebecca Long-Bailey said the concessions were welcome but would create a two-tier system, where the amount of support received being determined by when an applicant made a claim.

“The welfare system no longer works as it should,” Opposition leader Kemi Badenoch said , adding the number of people getting on to welfare payments each day was not sustainable. However, she said the Conservative Party could not support the bill, saying the bill was “rushed”.

A government statement said that montly PIP awards had more than doubled since the pandemic , increasing by 1,000 new claimants per day or the population of Leicester annually.

“We must build a welfare system that provides security for those who cannot work and the right support for those who can,” said Work and Pensions Secretary, Liz Kendall.