Welfare concessions 'common sense', says PM - as he defends U-turn
Sir Keir Starmer said changes to his welfare bill "strike the right balance" after making concessions to his backbench MPs.
The prime minister described the U-turn as "common sense" and said it means "we can now get on with the job".
Sir Keir faced a significant rebellion over plans to cut sickness and disability benefits as part of a package he said would shave £5bn off the welfare bill and get more people into work.
Speaking to reporters on Friday, he stood by his position that the welfare system needs reform as "it doesn't work, and it traps people".
He added: "We need to get it right. That's why we've been talking to colleagues and having a constructive discussion.
"We've now arrived at a package that delivers on the principles with some adjustments, and that's the right reform, and I'm really pleased now that we're able to take this forward.
"For me, getting that package adjusted in that way is the right thing to do, it means it's the right balance, it's common sense that we can now get on with it."
The concessions include exempting existing Personal Independence Payment claimants (PIP) from the stricter new criteria, while the universal credit health top-up will only be cut and frozen for new applications.
5:45
More money will also be front-loaded into helping people find jobs, though it is not clear how much beyond the £1bn already announced.
The changes came after 127 Labour MPs signed an amendment calling for the cuts to be delayed and consulted on with disabled people.
Rebels feared the reforms wouldn't actually help people find work while pushing thousands of disabled people and children into poverty, as per the government's own impact assessment.
The discontent threatened to derail the Universal Credit and Personal Independence Payment Bill when it comes before the Commons for a vote on Tuesday, on the week that marks a year of Starmer in government.
Asked what he would do about a "hole" in the public finances that the changes are said to leave, Sir Keir said the funding will be set out in the autumn budget "in the usual way".
The concessions on PIP alone will protect an estimated 370,000 people currently receiving the allowance who were set to lose out following reassessment.
Economists at the Institute for Fiscal Studies and the Resolution Foundation have both suggested that the changes could reduce savings intended in the original package by up to £3bn.
Chancellor Rachel Reeves is also under pressure to find money to pay for the U-turn on cuts to winter fuel, which followed a drubbing at the local elections in May.
Asked about the series of U-turns, Work and Pensions Secretary Liz Kendall earlier said: "Sometimes there's strength in listening.
"I really believe that to be the case, that you end up in the right position when you talk to all of those with knowledge and experience and actually, if you want decisions to be the right ones and to last for generations to come, I believe that's how you make the right changes."
However, she would not guarantee the bill will pass next week.
Some 83 Labour MPs would need to rebel for the government to be defeated.
0:43
Last night Dame Meg Hillier, one of the leading rebel voices, hailed the concessions as "massive changes" to protect vulnerable people and involve disabled people in the design of future reforms.
However, not all the rebels have been satisfied with the changes, with several suggesting they would create a "two-tier system". Sky News is aware of at least 20 MPs who currently intend to still vote against. Many others are undecided.
The concessions came after Downing Street publicly stuck to its guns while engaging in a frantic ring-around to get rebels onside, which further angered MPs.
Many have called for a reset in relations with Downing Street, as the fallout from the rebellion threatens to cause lasting damage.
Conservative leader Kemi Badenoch criticised the U-turn, saying the government's failure to make "minor savings" on welfare showed they were unable to deal with major issues.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Powys County Times
32 minutes ago
- Powys County Times
Starmer to warn of ‘backroom stitch-up' in Welsh elections
Sir Keir Starmer will warn of a 'backroom stitch-up' between the Tories, Reform UK and Plaid Cymru ahead of key elections in Wales next year. In a speech to the Welsh Labour conference, the Prime Minister is set to say that a coalition of those parties would be a 'return to the chaos and division of the last decade' and risk rolling back the progress his party is starting to make. Welsh First Minister Baroness Eluned Morgan meanwhile will call next year's polls a 'moment of reckoning' and 'serious threat' as Reform UK is 'rising' and Plaid Cymru 'mobilising'. And Labour will announce funding to help those made redundant by the Tata Steel closure in Port Talbot. Reform UK is eyeing an opportunity to end Labour's 26 years of domination in the Welsh Parliament at the Senedd elections in May next year. Labour performed poorly in this year's local elections in England, which saw Nigel Farage's party win a swathe of council seats. Conservative Party leader Kemi Badenoch has not ruled out making deals with Plaid Cymru or Reform at the next Senedd election. Welsh Labour leader Baroness Morgan will say the election is not going to be a 'routine affair'. She will add: 'It will be a moment of reckoning. Reform are rising. Plaid are mobilising. And across the country, people are asking big, serious questions about the kind of future they want for Wales. 'This is not a moment to look away. This is the moment to look forward – a moment of maximum opportunity and, yes, also of serious threat. It's time to stand up. It's time to get involved.' The conference in Llandudno comes on the heels of Sir Keir's U-turn on welfare policy to avert a major backbench rebellion that will leave Chancellor Rachel Reeves facing a scramble to fill a potential hole in her budget this autumn. Ahead of marking a year in office next week, Sir Keir will point to moves his Government has made since the election that he says bring direct benefits to Wales, including international trade deals that give a boost to brands such as Penderyn whisky and legislation to bolster workers' rights. Wales Secretary Jo Stevens is set to announce a new £11 million fund for businesses offering skilled employment in Port Talbot as it seeks to help those left unemployed by Tata Steel's closure of the steelworks. The fund is made up of £6.78 million from the Government and £5 million from Tata Steel. 'The Tories abandoned our steelworkers. Reform want to cancel the Electric Arc Furnace, throw away 5,000 jobs, and send people back down the mines. 'We have the backs of our steelworkers, their families and local businesses,' Ms Stevens will say. Sir Keir will tout the advantages of having parallel Labour governments in Westminster and Wales, with Baroness Morgan leading the latter as a 'fierce champion'. 'This is the party that has got wages rising faster in the first 10 months than the Tories managed in 10 years. This is the government that is cutting bills and creating jobs. This is the movement that will rebuild Britain and renew Wales,' Sir Keir is expected to say. Labour is the party with the 'interests of working people at their heart' and 'it always will be', he will say. 'Or, there's the other option. The risk of rolling back all the progress we're beginning to make. A return to the chaos and division of the last decade. 'A backroom stitch-up between the Tories, Reform and Plaid. And once again, it will be working families left to pick up the bill. 'Whether that's with Reform, or with Plaid's determination to cut Wales off from the rest of the country – with no plan to put Wales back together.' The Conservatives have said that Labour has 'let Wales down for far too long'. Shadow Welsh secretary Mims Davies said: 'Divisions between a complacent Welsh Labour and Starmer's failing UK Government in Westminster have simply not improved Wales's outlook, despite the fabled benefit of two Labour Governments in Wales, which is absolute bunkum.' She also added: 'Labour has let Wales down for too long, taken people for granted and now the PM is making a mess of the entire United Kingdom.'
North Wales Chronicle
an hour ago
- North Wales Chronicle
Starmer to warn of ‘backroom stitch-up' in Welsh elections
In a speech to the Welsh Labour conference, the Prime Minister is set to say that a coalition of those parties would be a 'return to the chaos and division of the last decade' and risk rolling back the progress his party is starting to make. Welsh First Minister Baroness Eluned Morgan meanwhile will call next year's polls a 'moment of reckoning' and 'serious threat' as Reform UK is 'rising' and Plaid Cymru 'mobilising'. And Labour will announce funding to help those made redundant by the Tata Steel closure in Port Talbot. Reform UK is eyeing an opportunity to end Labour's 26 years of domination in the Welsh Parliament at the Senedd elections in May next year. Labour performed poorly in this year's local elections in England, which saw Nigel Farage's party win a swathe of council seats. Conservative Party leader Kemi Badenoch has not ruled out making deals with Plaid Cymru or Reform at the next Senedd election. Welsh Labour leader Baroness Morgan will say the election is not going to be a 'routine affair'. She will add: 'It will be a moment of reckoning. Reform are rising. Plaid are mobilising. And across the country, people are asking big, serious questions about the kind of future they want for Wales. 'This is not a moment to look away. This is the moment to look forward – a moment of maximum opportunity and, yes, also of serious threat. It's time to stand up. It's time to get involved.' The conference in Llandudno comes on the heels of Sir Keir's U-turn on welfare policy to avert a major backbench rebellion that will leave Chancellor Rachel Reeves facing a scramble to fill a potential hole in her budget this autumn. Ahead of marking a year in office next week, Sir Keir will point to moves his Government has made since the election that he says bring direct benefits to Wales, including international trade deals that give a boost to brands such as Penderyn whisky and legislation to bolster workers' rights. Wales Secretary Jo Stevens is set to announce a new £11 million fund for businesses offering skilled employment in Port Talbot as it seeks to help those left unemployed by Tata Steel's closure of the steelworks. The fund is made up of £6.78 million from the Government and £5 million from Tata Steel. 'The Tories abandoned our steelworkers. Reform want to cancel the Electric Arc Furnace, throw away 5,000 jobs, and send people back down the mines. 'We have the backs of our steelworkers, their families and local businesses,' Ms Stevens will say. Sir Keir will tout the advantages of having parallel Labour governments in Westminster and Wales, with Baroness Morgan leading the latter as a 'fierce champion'. 'This is the party that has got wages rising faster in the first 10 months than the Tories managed in 10 years. This is the government that is cutting bills and creating jobs. This is the movement that will rebuild Britain and renew Wales,' Sir Keir is expected to say. Labour is the party with the 'interests of working people at their heart' and 'it always will be', he will say. 'Or, there's the other option. The risk of rolling back all the progress we're beginning to make. A return to the chaos and division of the last decade. 'A backroom stitch-up between the Tories, Reform and Plaid. And once again, it will be working families left to pick up the bill. 'Whether that's with Reform, or with Plaid's determination to cut Wales off from the rest of the country – with no plan to put Wales back together.' The Conservatives have said that Labour has 'let Wales down for far too long'. Shadow Welsh secretary Mims Davies said: 'Divisions between a complacent Welsh Labour and Starmer's failing UK Government in Westminster have simply not improved Wales's outlook, despite the fabled benefit of two Labour Governments in Wales, which is absolute bunkum.' She also added: 'Labour has let Wales down for too long, taken people for granted and now the PM is making a mess of the entire United Kingdom.'
South Wales Argus
an hour ago
- South Wales Argus
Senedd hears Swansea Bay city deal ‘well on its way'
Rob Stewart said six projects had been completed – to a value of £210m – by the end of 2024/25 as part of the £1.3bn Swansea Bay city deal, which was signed in 2017. Cllr Stewart, who chairs the Swansea Bay city region joint committee, told the Senedd's economy committee a further 19 projects, valued at £761m, are in the pipeline. The leader of Swansea council pointed to 'significant progress' in moving projects from the feasibility stage to completion, with the 71/72 Kingsway project in Swansea set to open. He stressed the Swansea deal had very different terms and conditions to the Cardiff capital region city deal, which was agreed with a different UK Government. The Labour politician said 896 jobs have been created so far – against an initial target of 9,700 – and the city deal has leveraged £133m of private-sector investment. Pressed about jobs numbers, Cllr Stewart said councils had to jump through a lot of hoops, which took a long time, and the job creation numbers have started to accelerate. He was hopeful of hitting or even exceeding the 9,700 target. Giving evidence on June 26, he told the committee that Pembroke Dock infrastructure upgrades and Trinity Saint David's 'innovation matrix' building have been completed.
