Starmer U-turns on welfare cuts after more than 120 MPs threatened to oppose it.
Starmer U-Turns on Welfare Cuts with Major Concessions to Rebel Labour MPs
What happened
Prime Minister Sir Keir Starmer has offered major concessions to over 120 Labour MPs who threatened to oppose key parts of the welfare reform bill. After intense talks, No 10 agreed to apply benefit eligibility changes only to new claimants, shield existing recipients from cuts, and consult disability campaigners on future criteria. They’ve also brought forward an extra £1 billion in employment support this year, and tentatively plan to explore ending the two-child benefit cap, a move costing around £3 billion annually. These reversals could reduce government savings by up to £8 billion over the next three years, placing renewed pressure on Chancellor Rachel Reeves to identify cost offsets or consider tax rises.
Why this matters
The concessions mark a striking U-turn for Starmer’s government and are the most significant internal challenge his leadership has faced. They follow earlier reversals on winter fuel payments and a recent gaffe over welfare communications. The move exposes deep tensions between the fiscal goals of Downing Street and the values of Labour backbenchers deeply concerned about protecting vulnerable constituents such as disabled people and children.
What next
A vote on the amended bill is expected next week. Labour insiders suggest most moderate rebels and committee chairs are now onboard, though some hardline critics remain unconvinced. Downing Street is preparing for a Cabinet push to finalise the compromise and avert a humiliating Commons defeat. As Starmer seeks to regain control, ministers may need to further adjust policy or secure extra departmental savings. The episode raises concerns about his ability to enact tough reforms, and whether additional concessions, like scrapping the two‑child cap, will be on the table.
READ: Political Editor opens up about the long-term damage of Starmer’s mess