Keir Starmer is still facing a damaging rebellion after ministers admitted that 150,000 people will still be pushed into poverty by benefits reforms.
With the prime minister’s authority on the line, his work and pensions secretary Liz Kendall unveiled amended benefits reforms in a bid to persuade Labour backbenchers not to vote down the bill.
Ahead of a crunch vote on the welfare reform bill on Tuesday, Labour figures openly criticising the benefit cuts included Manchester mayor Andy Burnham, who urged Labour MPs to vote the whole bill down, and London mayor Sadiq Khan who said the plans needed a “radical transformation”.
Underlining the chaos surrounding the rebellion, Bridget Phillipson insisted Sir Keir would lead Labour into the next general election. In an interview with The Independent days before Labour marks its first year in power, the education secretary also said government had its “ups and downs” and suggested better times were ahead.
More than 130 Labour backbenchers had signed an amendment that would have effectively killed the legislation – but ministers were hoping a last-minute pledge to protect current personal independence payments (Pip) and other changes would end the rebellion.
Ms Kendall also promised a review into pip payments, led by work and pensions minister Sir Stephen Timms.
But even before she spoke in the Commons, a government impact assessment confirmed that 150,000 disabled people will still be plunged into poverty under the watered-down measures – fewer than the 250,000 threatened by original plans, but enough to leave many Labour backbenchers angry and demanding that the “rushed” legislation is withdrawn.
Work and pensions committee chair Debbie Abrahams, one of the major architects of the rebellion, did not rule out voting against the bill.
Ms Abrahams, who negotiated last week’s concessions alongside Treasury committee chair Dame Meg Hillier, suggested a rift over what had been negotiated.
Although she described the concessions as “good”, Ms Abrahams said the rebels were “not quite there yet” on a deal with the government.
“The actual offer that was put to one of the negotiating team wasn’t actually what we thought we had negotiated,” she said. “There are some issues around that.”
As Ms Kendall’s statement was heard in almost complete silence in the Commons, a succession of Labour MPs took to their feet to vent their fury about the reforms and demand that the bill be delayed until after the Timms review was completed.
To add to Labour’s woes, Ms Kendall admitted the benefit cuts would only save taxpayers £2.5bn – not £4.8bn as previously stated – posing new questions over where chancellor Rachel Reeves will balance the books.
As she spoke, More in Common published polling that revealed two-thirds of voters (63 per cent) did not trust Labour with disability benefits.
A Downing Street spokesperson earlier refused to rule out even more concessions as Labour backbenchers continued to pile on pressure.
Speaking to the Commons, a beleaguered Ms Kendall admitted there had been “real concerns” about the Government’s welfare reforms, adding: “We have listened carefully, and we are making positive changes as a result.”
She went on to say: “We will now ensure the new four-point requirement will only apply to new claims from November 2026. This means no existing claimants will lose Pip because of the changes brought forward in this Bill, and existing claimants of passported benefits like carers allowance will continue to get them too.”
Responding to claims this would create a “two-tier” benefits system, Ms Kendall said: “I would say to the House, including members opposite, that our benefits system often protects existing claimants from new rates or new rules, because lives have been built around that support, and it’s often very hard for people to adjust.”
However, Sarah Owen, the Labour chair of the women and equalities select committee, warned that by pressing ahead with the bill before the Timms review was completed “could lead to not just two tiers but three tiers.”
Among a succession of MPs demanding a delay to the legislation was Marie Tidball, a disabled Labour MP, who furiously attacked the government for a lack of engagement with disability groups.
She said: “This is not just about the process, this makes disabled people worse off. The principle of fairness means disabled people have a legitimate expectation to be consulted, and in order to fulfil the Equality Act section 149 public sector equality duty.
“Why did the Department for Work and Pensions choose not to consult with disabled people on Pip proposals, and what work will her department do to win back the trust of disabled people?”
Stella Creasy warned that the proposals could “breach obligations from the United Nations Convention” on disability rights.
However, Calder Valley MP Josh Fenton-Glyn, a signatory of the rebel amendment, praised the minister for “listening” to criticisms.
