Keir Starmer has defended his government’s welfare reforms as he faced a grilling at PMQs.
The prime minister insisted his benefits bill will be “better for individuals, better for the taxpayer, and better for the economy” despite a £5billion hole now left in the government’s spending plans. And he refused to rule out tax rises.
Sir Keir also failed to back Rachel Reeves as he refused to guarantee she would stay on as chancellor. Ms Reeves appeared to be fighting back tears, as Kemi Badenoch told the Commons she looked “absolutely miserable”. Labour minister Ellie Reeves then seemed to be holding her sister’s hand as she left the chamber on Wednesday.
It comes after one of the leading backbench rebels, Rachael Maskell, told the BBC the bill was seen “disintegrating before our eyes” when it scraped through its second reading on Tuesday.
The watering down of the legislation represents the most significant knock to the prime minister’s leadership since coming into power a year ago.
And despite the concessions, Sir Keir still suffered the biggest rebellion of his premiership so far, with 49 Labour MPs voting against the government’s bill. The bill, therefore, passed its second reading by 335 votes to 260.
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Key Points
- Watch live: Starmer faces Badenoch at PMQs after Labour’s welfare bill passes second reading
- Starmer refuses to say Rachel Reeves will keep her job
- Starmer fails to rule out tax rises in autumn after welfare U-turn
- Starmer defends welfare U-turn 'in the middle of the debate'
- Rayner says ‘not a chance’ she wants to be PM
- Welfare reform bill has disintegrated, Labour rebel claims
Reeves crying in Commons over 'personal matter', spokesperson for chancellor says
13:11
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Tara Cobham
Rachel Reeves was crying in the Commons over a “personal matter”, a spokesperson for the chancellor has said.
Asked about Ms Reeves’ tears, the spokesperson said: “It’s a personal matter, which, as you would expect, we are not going to get into.
“The chancellor will be working out of Downing Street this afternoon.”
Reeves 'is going nowhere' as chancellor and retains PM's 'full backing', Starmer's press secretary says
13:09
Rachel Reeves "is going nowhere'' as chancellor and retains the prime minister's "full backing'', Sir Keir Starmer's press secretary has said.
Starmer fails to say whether he has 'changed his mind' over Pip reform plans
13:03
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Tara Cobham
Sir Keir Starmer failed to say whether he has “changed his mind” on the government’s plans for reform of Personal Independence Payments (Pip) after a question from Liberal Democrat Sir Ed Davey.
Sir Ed said in Prime Minister’s Questions: “Yesterday, the Government was asking this House to vote for a law that would mean someone with a condition like Parkinson’s or multiple sclerosis would qualify for a personal independence payment (Pip) today, but someone diagnosed with the same condition with very same symptoms in a few months time would not.
“We all know that the cost of welfare needs to come down, but that was not a fair way to do it. Until he lost control yesterday, the Prime Minister was arguing for that approach. Has he changed his mind on this or not?”
Responding, Sir Keir Starmer said: “The Stephen Timms review will take place, a very important review to look into this issue.
“But what we did do last night was end mandatory reassessments for those with severe disabilities. I thought that he and his party cared about things like that. It’s the right thing to do, and they voted against it.
“We rebalanced Universal Credit, long overdue. I think he believes that, but what did he do last night? He voted against it. We set out a pathway to reform, something he argues for every week, but what did he do when he had the chance? He voted against it.”
Sir Ed replied: “The House and his backbenches will note that he didn’t answer my question.”
Badenoch describes Reeves as a 'human shield' for PM's 'incompetence'
12:51
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Tara Cobham
Sir Keir Starmer failed to repeat his promise on whether Rachel Reeves will stay as Chancellor until the next election, as Kemi Badenoch said she was a “human shield” for the prime minister’s “incompetence”.
The chancellor was visibly tearful as the exchanges unfolded.
The Conservative leader had said: “This man has forgotten that his welfare bill was there to plug a black hole created by the Chancellor. Instead they’re creating new ones. They’re creating new ones.
“(Ms Reeves) is pointing at me, she looks absolutely miserable. Labour MPs are going on the record saying that the Chancellor is toast, and the reality is that she is a human shield for his incompetence. In January, he said that she would be in post until the next election. Will she really?”
Sir Keir replied: “(Mrs Badenoch) certainly won’t. I have to say, I’m always cheered up when she asks me questions or responds to a statement because she always makes a complete mess of it and shows just how unserious and irrelevant they are.
“She talks about the black hole, they left a £22 billion black hole in our economy and we’re clearing it up, and I’m really proud that in the first year of a Labour Government, we got free school meals, breakfast clubs, childcare, got £15 billion invested in transport in the North and the Midlands.
“We’re cutting regulation, planning and infrastructure is pounding forward, building 1.5 million homes, the biggest investment in social and affordable housing, and of course the three trade deals.”
Mrs Badenoch replied: “How awful for the Chancellor that he couldn’t confirm that she would stay in place.”
Ellie Reeves appears to hold sister Rachel's hand leaving Commons
12:49
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Tara Cobham
Labour minister Ellie Reeves appeared to be holding her sister’s hand as she left the chamber on Wednesday, after chancellor Rachel Reeves appeared to be crying during PMQs.
Watch: Badenoch accuses Starmer of having 'brass neck' over welfare bill defence
12:37
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Tara Cobham
'Are you too weak to get anything done?' Badenoch asks Starmer
12:32
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Tara Cobham
Kemi Badenoch has asked whether Prime Minister Sir Keir Starmer is “too weak to get anything done”.
The Conservative leader told the Commons: “I’ll tell him what we did on welfare.”
When Labour MPs laughed, she added: “Why are they laughing? They don’t know. My party delivered the biggest reform of welfare in government. We got record numbers of people into work including millions of disabled people, and we cut the deficit every year until Covid.”
Ms Badenoch continued: “What he forgets is that since the election, since he became Prime Minister, an additional 1,000 people a day are signing on to incapacity benefits. That is 50% more than under us.
“And astonishingly, because of the mess they made yesterday, because there’re no more savings, sickness benefits alone – alone – are set to rise to £100 billion on his watch. He cannot reduce that now.”
Ms Badenoch described the Universal Credit and Personal Independence Payment Bill as being “completely gutted” and asked: “He said that he would take the difficult decisions, but isn’t the reality that he is too weak to get anything done?”
Watch: Badenoch says 'absolutely miserable' Reeves acts as 'human shield for Starmer's incompetence'
12:30
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Tara Cobham
Starmer leaves his chancellor high and dry
12:25
The Independent’s political correspondent Archie Mitchell reports:
Sir Keir Starmer was all too happy to confirm Rachel Reeves is safe in her job for the entire parliament - as recently as January.
Asked to repeat the promise at PMQs, the prime minister gave no such reassurance.
Kemi Badenoch seized on Sir Keir’s refusal to guarantee Ms Reeves’ safety - amid mounting questions about her performance among Labour MPs.
Ms Reeves, who looked devastated as she sat on the frontbench behind Sir Keir, will be left wondering why.
Is it another example of Sir Keir being flat-footed and unable to see how his answers will be interpreted? Or is it the first sign a reshuffle is on the way, and that his chancellor is for the chop?
Starmer fails to rule out tax rises in autumn after welfare U-turn
12:21
Keir Starmer has failed to rule out tax rises in the autumn after his U-turn on welfare reform.
Kemi Badenoch challenged the prime minister during PMQs, demanding to know if the government could rule out tax hikes.
The PM replied: “She knows no prime minister or chancellor ever stands at the dispatch box and writes a budget in the future.”
Starmer refuses to say Rachel Reeves will keep her job
12:18
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Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
Sir Keir Starmer has refused to guarantee Rachel Reeves will keep her job, with MPs increasingly disgruntled about the chancellor’s performance.
In a deeply personal attack on the chancellor, Kemi Badenoch said Ms Reeves looks “absolutely miserable”.
“In January,he said that she would be in post until the next election. Will she really?” Ms Badenoch asked.
Sir Keir joked that Ms Badenoch “certainly won’t”, but dodged the question about Ms Reeves' future.
Badenoch: ‘Has he read the papers this morning’
12:17
The Independent’s political correspondent Archie Mitchell reports:
Kemi Badenoch has pointed to a bleak set of front pages for Sir Keir Starmer, asking: “Has he read the papers this morning?”
The prime minister said Labour’s welfare reforms will fix a broken system, adding that “we are clearing up the mess that they make”.
The Tory leader said: “He's got some brass neck. Has he read the papers this morning? Has he read the papers this morning? That bill will achieve nothing. It is a pointless waste of time, and is absolute proof that he doesn't have a plan.”
Starmer defends welfare U-turn 'in the middle of the debate'
12:09
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Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
Sir Keir Starmer has defended last night’s climbdown on his welfare reforms, claiming the final bill was “consistent with the principles I set out throughout”.
The prime minister said: “What we delivered last night was a bill that ends mandatory reassessment of those with severe disabilities. That is the right thing to do. It rebalances Universal Credit that is long overdue, and it sets out a pathway to reform of Pip.”
He insisted his welfare reform plans would be “better for individuals, better for the taxpayer and better for the economy”.
Kemi Badenoch said the prime minister must not have seen what happened in the Commons as chaos unfolded on Tuesday night.
The Tory leader said: “This bill was completely gutted in a U-turn in the middle of the debate removing clause five. Where on earth was he?”
She added: “This is the first prime minister in history to propose a bill to save money, who ended up with a bill which costs money.”
PMQs: Cheers louder from the Tories for Starmer
12:08
The Independent’s political editor David Maddox reports:
There is a half hearted attempt from Labour MPs to show support for their beleaguered prime minister as he opens PMQs after the bruising experience of the welfare debate yesterday.
But it says a lot that the ironic cheers for him are louder from the Tory benches even though there are not many of them comparatively.
However, it looks likely he should get a lot of easy questions from his own side today as the party tries to heal its wounds. That started with Rochdale MP Paul Waugh saying how great free school meals are.
Kemi Badenoch congratulates Mr Waugh “for being toadie of the week”.
Keir Starmer to be grilled over welfare reform at PMQs
11:59
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Tara Cobham
Keir Starmer is set to be grilled by MPs at PMQs over welfare reform.
The prime minister will be questioned in the Commons around midday.
It comes after Labour’s benefits bill scraped through its second reading after the government made major concessions.
Watch live: Starmer faces Badenoch at PMQs after Labour’s welfare bill passes second reading
11:52
,
Tara Cobham
Pictured: Starmer leaves Downing St as he is set to be grilled at PMQs over welfare reform
11:50
,
Tara Cobham
Angela Rayner reveals why she’d never want to be prime minister
11:45
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Tara Cobham
Angela Rayner has said she would never want to be prime minister because “it would age me by 10 years within six months”.
“Have you ever seen a prime minister after a year or two in government?” the deputy prime minister joked.
The morning after Sir Keir Starmer scraped through a major rebellion over his watered-down welfare reforms, Ms Rayner was asked whether she is waiting in the wings to take the embattled PM’s place.
The Independent’s political correspondent Archie Mitchell reports:
Farage was ‘key architect of Brexit’ false promises, Rayner
11:30
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Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
Angela Rayner has said Nigel Farage “promised the world the moon on a stick” with Brexit and Britain has not seen any of the benefits.
Asked about the prospect of Reform UK winning a general election, she said: “Nigel Farage was the key architect for Brexit, and all these wonderful things we were going to get, and we haven't had those wonderful things. Now we can argue this, we were promised a lot, and we haven't had that. So I think you have to be very skeptical about people that will promise the world the moon on a stick, and then there's no detail of how they can actually deliver it.”
Labour set winter fuel threshold ‘too low’, Rayner says
11:15
,
Tara Cobham
Labour set the winter fuel payment threshold too low when it came into power, the deputy prime minister has said.
Angela Rayner said it is a “fair thing to challenge me on” when questioned about the U-turn on one of Labour’s first acts in government.
Asked by ITV’s Lorraine, she said: “We said that, you know, people who are millionaires don't need it, and many pensioners say, ‘I don't need them’.
“We got the threshold at the wrong point, and that is very clear, that people said we needed a threshold, but where do you set that line?
“We took it too low, and then we reflected on that, and we changed the policy as a result of that. And I think that's a fair thing to challenge me on.”
Watch: GMB’s Ed Balls in fiery clash with Tory MP for ‘waffling’ over welfare cuts
11:00
,
Tara Cobham
‘We are in a better place,’ Angela Rayner says
10:45
,
Tara Cobham
Angela Rayner has said Labour is “in a better place” after U-turning on its flagship welfare reforms in a dramatic Commons showdown on Tuesday night.
The deputy prime minister told ITV’s Lorraine: “People might see that as, oh, well, it's chaos. But actually, we've got to a better place now, and we've got the bill through Parliament at its second reading. And now we'll get into the details.”
‘Being prime minister would age me 10 years within six months,’ Rayner says
10:30
,
Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
Angela Rayner has said there is “not a chance” she wants to become prime minister as it would “age me by 10 years within six months”.
Asked whether she is waiting in the wings as Sir Keir Starmer’s successor, she told ITV’s Lorraine: “I'm very interested in delivering for the people of this country, because to be elected as an MP from my background was incredible. Yes. And when I first went into parliament, I thought, this is Hogwarts. And it's like, this is an incredible place. I've never been anywhere like it.
“It was like going to a church. It was an incredible building and learning all of that, but having that opportunity to serve my community that has raised me, looked after me, given me opportunities, and I don't forget that.
“And to be deputy prime minister of this country it's got to count for something, not a title.
“But what are you going to give back to your communities? And that's why I'm so passionate about council housing that we need. That's why I'm passionate about making sure we've got good, strong employment rights and that we're delivering for working people in this country. Because they gave me an opportunity.”
Shadow chancellor claims 'tax rises are on the way'
10:15
,
Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
The shadow chancellor has claimed “tax rises are on the way”.
Sir Mel Stride MP said: “Tax rises are on the way to pay for Labour’s mismanagement of the economy.
"Hard working families will have an agonising summer waiting to hear how Rachel Reeves will claw back the cash to make up for the failings of this weak prime minister."
Rayner: We have to slow rising welfare bill
10:06
,
Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
Angela Rayner has said the welfare bill is “going up rapidly” and “we have got to flatten that curve”.
The deputy prime minister said after brokering major concessions on the welfare bill that nobody is going to see changes to their current benefits.
But she said Labour will work with disability groups going forward to change the assessment criteria for those claiming personal independence payment (Pip).
She told ITV’s Lorraine: “That's what MPs were really concerned about, making sure that we did things in the right order, supportively, so that people could be reassured that, yes, we will reform the welfare state, because it's going up at a really rapid rate.
“We need to get people into good employment and the support there, so we're bringing that package forward, but also make sure that people who are really vulnerable and need that help get the right and proper help.”
Blunkett: Starmer can still win next general election
10:00
,
Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
David Blunkett has said Sir Keir Starmer can still win the next general election after Tuesday night’s chaotic welfare vote.
Asked whether the prime minister has lost his authority, the Labour grandee told BBC Radio 4’s Today programme: “He hasn't lost it to the point where in three years time, we can't win the general election. People lose battles and they rebuild.”
Lord Blunkett called for Sir Keir to commission a private review of “exactly what went wrong over the last few weeks, who gave the advice they gave and why… and let’s learn from it”.
“If you don’t learn from your mistakes, you’ll make them again,” he added.
Watch: McFadden 'won't deny financial consequences' of welfare reform decision
09:45
,
Tara Cobham
Labour left calls for a wealth tax grow
09:30
The Independent’s political correspondent Archie Mitchell reports:
With Rachel Reeves looking for ways to plug the black hole left by the government’s welfare climbdown, calls from left-wing Labour MPs for a wealth tax are growing.
Labour rebel Andy McDonald said a tax on wealth, and equalising capital gains tax with income tax, should be used to make up the shortfall and invest in public services.
He told Times Radio: “If you listen to people like the patriotic millionaires, who've campaigned for higher taxes for themselves, these are people who've said in no uncertain terms that this country has given me every single opportunity, I've benefited from health and education and the opportunities presented to go into business.
“I've succeeded and I've flourished and I can afford to pay a little bit more. They're suggesting that a wealth tax of two percent on assets over £10m will produce for the Treasury £24bn.”
How your MP voted in Starmer’s welfare reforms
09:15
,
Tara Cobham
Sir Keir Starmer’s welfare bill has managed to scrape past its second reading as he fended off what is believed to be the most significant rebellion since he became prime minister a year ago.
The bill passed its second reading by 335 ayes to 260 noes, a majority of 75, with 49 Labour MPs voting against the welfare cuts which have caused controversy.
My colleague Bryony Gooch takes a look at how each MP voted:
Cabinet minister declines to rule out tax rises after Labour's welfare concessions
09:00
,
Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
A Cabinet minister declined to rule out tax rises after Labour's welfare concessions to backbench rebels.
Pat McFadden told BBC Breakfast he is "not going to speculate" on what could be in the budget, due in the autumn, but said that ministers "will keep to the tax promises" in their manifesto.
Asked whether economists were right that tax rises look likely, the Chancellor of the Duchy of Lancaster told the programme: "This is one moving part of the budgetary picture, it does have a financial consequence yesterday.
"I'm not going to speculate on where the budget lands, because there are so many other different moving parts in it, and it wouldn't make sense for me to do that."
Asked explicitly whether he could rule out tax rises, Mr McFadden said: "I'm not going to speculate on the budget.
"We will keep to the tax promises that we made in our manifesto when we fought the election last year. But it doesn't make sense for me to speculate on something where, as I say, there are so many moving parts of which this is only one element."
Shadow chancellor demands government to explain 'where money will come from'
08:45
,
Tara Cobham
The shadow chancellor has demanded to know “where the money will come from” as he accused Labour of “making unfunded u-turns which will cost billions”.
In a post on X on Wednesday, Mel Stride said: “Labour are making unfunded u-turns which will cost billions.
“Before yesterday's welfare vote, I wrote to the Chancellor asking where the money will come from. And the u-turns are coming so thick and fast that since I wrote it they’ve racked up an even bigger bill with yet another u turn.
“So, what will it be Rachel Reeves – tax rises, more borrowing or both?
“Labour owes the country answers.”
Labour are making unfunded u-turns which will cost billions.
— Mel Stride (@MelJStride) July 2, 2025
Before yesterday's welfare vote, I wrote to the Chancellor asking where the money will come from. And the u-turns are coming so thick and fast that since I wrote it they’ve racked up an even bigger bill with yet… pic.twitter.com/Z5eoEZHvcq
Tax wealth instead of cuts for disabled people, Labour rebel tells PM
08:30
,
Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
Rachael Maskell has urged Sir Keir Starmer to consider wealth taxes to plug the hole left in the public finances by Labour’s benefits U-turn.
The Labour rebel told BBC Radio 4’s Today programme: “We need to look at those with the broadest shoulders.”
She added: “I think we heard very much in the debate, including from myself, that we need to look at those with the broader shoulders, as the Prime Minister said, contributing more into our system, but never pushing down on the poorest.
"And that was what the dynamic was yesterday, that we do need to look at things like a wealth tax, £24 billion, or equalisation of capital gains tax."
Minister warns welfare U-turn will have ‘financial consequences’
08:20
,
Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
One of the biggest problems for Labour after Sir Keir Starmer’s U-turn on welfare is the £5bn hole left in the government’s spending plans by the change.
And chancellor of the Duchy of Lancaster Pat McFadden on Wednesday admitted there would be “financial consequences” following the decision.
Mr McFadden told Sky News: “It has got a financial cost. I do accept that when you take a reform like that off the table, or at least off the table in the short term, there's a financial cost to that.
“Our budget has a lot of moving parts, and I'm not going to speculate on exactly where all those parts will land, months away from the budget.”
Welfare reform bill has disintegrated, Labour rebel claims
07:50
,
Tara Cobham
The Independent’s political editor David Maddox reports:
The depth of anger still felt towards Keir Starmer was voiced by York Central Labour MP Rachael Maskell, who tabled an amendment on Tuesday to kill the bill.
She told BBC Radio 4’s Today Programme: “I think we saw yesterday the bill disintegrating before our eyes even in the last moments of the debate, when the minister was winding up, we heard that other sections of the bill will be removed.
“Throughout the day, what we saw was a change in power between the prime minister and his government and disabled people across our country. They having their voice at the heart of Parliament, and that's why I put the reasoned amendment down.”
Ms Maskell refused to say that the prime minister had “shown good leadership” or even defend him against charges of being “immoral”.
She warned: “I think he should be listening far more. Of course, he's got a complex job in a complex world at the moment, and I appreciate that.”
She said that the problems of the bill were that “the big elements, the fiscal elements, the elements determined by the Treasury, were not for consultation.”
She went on: “I believe there was a fix, because that paper was rushed out from the Treasury needing to find savings, and they chose to find savings on the back of disabled people.”
Rachel Reeves will keep her job, McFadden insists
07:48
,
Tara Cobham
The Independent’s political correspondent Archie Mitchell reports:
Pat McFadden has insisted the chancellor will keep her job despite the chaos around Labour’s welfare reforms.
The chancellor of the Duchy of Lancaster defended Rachel Reeves, insisting she is doing an “excellent job”.
One of the key issues with Labour’s benefit cuts was that MPs and campaigners believed they were reverse-engineered to meet a savings target demanded by the chancellor.
Having scrapped almost the entire plan, the government has now been left with a £5bn hole in its spending plans.
But, asked by Sky News whether she would keep her job, Mr McFadden said: “Of course she will, she is doing an excellent job, we take those decisions as a team, we stand as a team and go forward as a team.”
ANALYSIS: Winning welfare vote was supposed to allow Starmer to move on – but it’s only created more problems
07:30
,
Tara Cobham
The Independent’s Whitehall Editor Kate Devlin reports:
The government may have won the welfare vote, but it does not seem like a victory this morning.
In fact, the vote may have created more problems than it solved.
A last-minute U-turn has left Rachel Reeves with a multi-billion pound hole in her sums.
Ministers are facing growing calls to pull the welfare bill entirely.
And furious Labour backbenchers are now demanding a government “reset”.
This vote now appears to be one of the most consequential of Labour’s first year in power – and not in the way Keir Starmer would have wanted.
Wrangling with backbench MPs over welfare reforms 'difficult', Cabinet minister says
07:24
,
Tara Cobham
Wrangling with backbench MPs over welfare reforms has been a “difficult process”, a Cabinet minister has said.
Chancellor of the Duchy of Lancaster Pat McFadden told Times Radio: “It’s been a difficult process there’s no doubt about that, over the last couple of weeks on this.
“But we got to a position where the second reading of the bill was passed, and where in regard to the most contentious issue of reforms to the Pip regime that will now be taken forward in slower time, with my colleague, Stephen Timms, the minister in charge heading up a review of that.”
Watch: Disabled Labour MP breaks down in tears over party’s welfare cuts
07:00
,
Holly Evans
Starmer scrapes through on welfare reform after last-minute concession to rebel MPs
06:00
,
Holly Evans
Sir Keir Starmer has suffered the biggest blow to his leadership since coming into power a year ago after he was forced to abandon a key plank of his controversial benefit cuts in order to get them through parliament.
While his welfare reform bill passed its second reading by 335 votes to 260 – a majority of 75 – the prime minister still suffered the largest rebellion of his premiership so far, with 49 Labour MPs voting to reject the legislation.
It came after a last-ditch announcement that plans to restrict eligibility for personal independence payments (PIP) – which had been the central pillar of the government’s reforms – were being dropped.
Read the full story here from our political editor David Maddox:
Scottish government minister says UK welfare reforms should be abandoned
05:00
,
Holly Evans
The UK Government must abandon its “unfair” welfare reforms in the wake of its late climbdown on a key plank of the proposals, Scotland’s Social Justice Secretary has said.
Shirley-Anne Somerville was commenting after the Universal Credit and Personal Independence Payment Bill passed its first legislative hurdle at Westminster.
Ahead of the crunch vote, Sir Keir Starmer ditched a mainstay of his welfare reform agenda as he battled to get the draft laws through the House of Commons.
