Sir Keir Starmer was forced to abandon a key element of his welfare reform plans to secure parliamentary approval for crucial legislation. The Government made a dramatic last-minute retreat on disability benefit changes as MPs prepared to vote on Tuesday night.
In a significant climbdown just 90 minutes before the Commons vote, ministers shelved controversial plans to restrict eligibility for personal independence payment (Pip). Any changes to the disability benefit will now only come after a comprehensive review of the system.
Chancellor faces budget headache
The decision creates a major financial challenge for Chancellor Rachel Reeves, who had banked on a forecast £4.8 billion saving from welfare reforms. The series of concessions has significantly reduced the expected savings, forcing her to seek alternative funding through spending cuts, tax increases or additional borrowing.
The Universal Credit and Personal Independence Payment Bill successfully cleared its first parliamentary hurdle despite the late changes. MPs voted 335 to 260 in favour of the legislation, giving the Government a majority of 75.
(PA/London) Note: This article has been edited with the help of Artificial Intelligence.
