PM confirms talks with rebels over welfare concessions

Sir Keir Starmer has confirmed the government is in talks with Labour rebels over concessions on its welfare plans.

The prime minister said talks would continue in the coming days to “get it right” ahead of a scheduled vote on Tuesday next week on legislation to deliver the proposals.

It comes after more than 120 Labour MPs backed an amendment that would stop the bill progressing through Parliament.

MPs have continued to sign up to the amendment, despite concerted efforts by ministers and party managers to persuade backbench colleagues to fall in line.

The chancellor, Rachel Reeves, is understood to be involved in the discussions with rebels.

Six more Labour MPs backed the amendment overnight, bringing the total to 126 – around half those Labour MPs who do not hold a government role.

During a statement in the Commons on this week’s Nato summit, Sir Keir said he recognised MPs of all parties were “eager” to reform the “broken” welfare system.

“We want to see reform implemented with Labour values and fairness,” he said.

“That conversation will continue in the coming days, so we can begin making changes together on Tuesday.”

The government’s Universal Credit and Personal Independence Payment Bill changes who would qualify for certain disability and sickness benefits.

The bill tightens eligibility requirements for personal independence payment (PIP), halves the health-related element of universal credit (UC), and increases the UC standard allowance.

Working-age health-related benefit spending has increased from £36bn to £52bn in the five years between 2019 in 2024, according to the Institute for Fiscal Studies (IFS), a think tank.

It is expected to double to £66 billion by 2029, without changes to the system.

Ministers have said the welfare legislation, which aims to save £5bn a year by 2030, is crucial to slow down the increase in the number of people claiming benefits.

The IFS sets out how the change could also save £6bn by 2029 – although the overall spend on welfare is still expected to rise by £8bn to about £60 billion.

However, some Labour MPs have criticised the proposals – arguing there has not been sufficient assessments of the impact of the measures.

Trade minister Douglas Alexander told the BBC he thought there was “common ground” between the government and the rebels.

“My sense is overwhelmingly Labour MPs want to get this legislation right,” he added.

“If there are improvements that can be made, let’s have the conversation”.

Later, Conservative leader Kemi Badenoch is expected to call for a “fundamental rethink” of the welfare state in a speech to the British Chambers of Commerce.

She is expected to say “Britain needs real welfare reform if we’re to incentivise takers to become makers”.

“I was shocked to hear that the majority of new disability claims in this country are now for behavioural and mental health conditions like anxiety,” she is expected to add.

“Under my leadership, the Conservative Party will not shy away from confronting the tough questions that need answering and, more importantly, providing the solutions.”

Sir Keir Starmer said on Wednesday the party was “pretty united” when it came to the notion of reforming the welfare system.

However, rumbles of criticism began after the government’s own assessment into the planned changes, published in March, found they could push 250,000 people into relative poverty.

The prime minister said changes to welfare would be “tough going” but added that “the important thing is to focus on the change that we want to bring about”.

He said: “Are there plenty of people and noises off? Yes of course – there always are, there always have been, there always will be.”

Commons leader Lucy Powell has confirmed the initial vote on the welfare bill is still scheduled for Tuesday next week, with all its further stages in the Commons scheduled for Wednesday the following week.

In May, Sir Keir announced plans to ease cuts on winter fuel payments following a backlash against moves that saw the pension top-up becoming means-tested.

Louise Murphy, senior economist at the Resolution Foundation think tank said the longer period of protection for those affected by Pip cuts is “a sensible tweak that should ease the blow for those who are no longer eligible for support”.

Research published by the Centre for Social Justice today also shows that by focusing welfare support on those with more severe conditions the UK could save up to £9 billion a year from the welfare bill.