UK Government Makes Major Climbdown on Welfare Reforms After Labour Rebel Opposition

The UK government under Prime Minister Keir Starmer has made major concessions to Labour rebel MPs to avoid a defeat in the House of Commons over its Welfare Reform Bill, which aimed to save £5 billion annually by 2025. The concessions include applying tighter eligibility criteria only to new claimants of disability benefits like the Personal Independence Payment (PIP) and the health element of Universal Credit, while protecting existing recipients. The government will also fast-track a £1 billion support plan and increase spending on back-to-work schemes, with some estimates suggesting the changes could cost up to £8 billion over the parliament. This climbdown marks the third significant U-turn by Starmer's administration in less than a month, following reversals on winter fuel payments for pensioners and a national inquiry into grooming gangs. The government emphasized that it had listened to MPs concerned about the pace of reform, framing the revised package as a fair compromise to preserve the social security system for those in need while putting it on a sustainable footing. Labour MPs who led the rebellion welcomed the compromise as a workable solution that balances reform with protecting vulnerable disabled people.