Sir Keir Starmer has defended his welfare reform plans despite suffering a humiliating climbdown that leaves an almost £5 billion black hole in the Government's spending plans. The Prime Minister was forced to scrap plans to restrict eligibility for the personal independence payment (Pip) to avoid a Labour rebellion which could have led to him losing a crunch Commons vote.
The change could force Chancellor Rachel Reeves to raise taxes in order to balance the books without the expected savings in the welfare budget. The abandoned reforms were expected to generate significant savings for the Treasury.
Starmer defends remaining reforms
At Prime Minister's Questions, Sir Keir defended what was left of the welfare reform package, telling MPs it will be "better for individuals, better for the taxpayer and better for the economy". The climbdown represents a major blow to the Government's authority just months into Labour's tenure.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
