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Keir Starmer defended his welfare reform plans despite being forced into a humiliating climbdown which leaves an almost £5 billion black hole in the UK government’s spending plans. The UK prime minister was forced to scrap plans to restrict eligibility for the personal independence payment, Pip, to avoid a Labour rebellion which could have led to him losing a crunch Commons vote. The change could force Chancellor Rachel Reeves to raise taxes in order to balance the books without the expected savings in the welfare budget. But at Prime Minister’s Questions, Starmer defended what was left of the welfare reform package, telling MPs it will be ‘better for individuals, better for the taxpayer and better for the economy’. By David Hughes, Caitlin Doherty and Christopher McKeon Press Association: Finance source: PA Copyright 2025 Alliance News Ltd. All Rights Reserved.
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