In what’s quickly becoming a defining moment for his leadership, Prime Minister Keir Starmer is pressing forward with controversial welfare reforms—even as his own party threatens open rebellion.
A major internal rift is now unfolding, challenging both the unity of the Labour Party and the future of Britain’s benefits system.
Over 100 Labour MPs Push Back Hard
More than 100 Labour MPs have signed a formal amendment aimed at blocking the proposed changes to Universal Credit and Personal Independence Payment (PIP).
Specifically, 108 MPs have added their names to what’s called a “reasoned amendment,” which, if successful in the July 1 vote, would essentially kill the bill in Parliament.
What’s striking is the sheer scale of opposition—it spans the full range of Labour’s political spectrum.
The size of this revolt is significant enough that it could wipe out the government’s strong majority, throwing the reforms into chaos.
One government minister has already resigned, and others are reportedly considering stepping down too.
Starmer Holds Firm Despite Mounting Pressure
Speaking to reporters during a visit to the Netherlands, Sir Keir Starmer remained adamant.
“We were elected to fix what’s broken in this country,” he said.
“The welfare system is broken, and we’re not backing down.”
Starmer argued that the current system traps too many people and doesn’t serve those who truly need help.
He pointed to alarming figures—1,000 people a day are starting to receive PIP.
“That’s like adding a city the size of Leicester to the welfare rolls every year,” he said.
“It’s simply not sustainable.”
Chancellor Rachel Reeves Faces Financial Fallout
While Starmer continues to back the reforms, his Chancellor, Rachel Reeves, faces a tough dilemma.
The planned changes are projected to save £5 billion annually—a significant chunk of public spending.
If the legislation collapses under internal opposition, she’ll need to find that money elsewhere.
Just yesterday, Reeves insisted there would be no major compromises.
However, this uprising may leave her no choice but to adjust course or face financial shortfalls that could derail other government plans.
Accusations of Rushed Reform Without Consultation
Critics of the bill aren’t just angry about the spending cuts—they’re furious about the process.
MPs backing the amendment argue the government has moved too quickly, without proper consultation with disabled people or a full understanding of the long-term effects.
The amendment highlights an impact assessment estimating 250,000 more people—50,000 of them children—could be pushed into poverty by the proposed legislation.
And while the government insists it’s about sustainability and fairness, Labour rebels say it’s reckless.
Labour MPs Voice Moral and Practical Concerns
Key Labour figures, including Treasury Committee chair Dame Meg Hillier and Work and Pensions Committee chair Debbie Abrahams, are among those who signed the amendment.
Abrahams stressed the importance of a more careful, informed approach.
“We’re being told to vote before disabled people have even been consulted, before the real impact has been measured, and before other support strategies have been properly tested,” she said.
Others, like Vicky Foxcroft, who resigned from a government role over the bill, and Helen Hayes, a former shadow education minister, voiced similar objections.
Hayes warned that cutting PIP might actually push more people out of work and deepen poverty.
Labour Leadership Tries to Contain the Fire
Cabinet Office minister Pat McFadden acknowledged the seriousness of the situation during a round of media interviews.
He admitted this wasn’t just a few disgruntled MPs but a full-blown rebellion.
“It’s a very serious thing to vote against your own government at second reading,” he told Sky News.
McFadden echoed Starmer’s concerns, saying that allowing the current welfare trends to continue unchecked isn’t an option for a party that supports the dignity of work.
“We can’t sit back and be okay with so many people moving onto long-term sickness benefits.”
A Split Threatens to Tear Labour Apart
Downing Street, however, is trying to stay upbeat, denying claims that the bill is already “dead on arrival.”
But internal threats are growing louder.
Some MPs warn they might form a breakaway faction—nicknamed “Labour 2″—if the leadership moves to discipline or expel dissenters.
Meanwhile, Deputy Prime Minister Angela Rayner has refused to rule out taking disciplinary action, including removing MPs from the party.
What the Reform Bill Proposes
At the heart of the bill are changes that would tighten access to PIP and reduce the sickness component of Universal Credit.
These payments are vital lifelines for many, especially disabled individuals and those with long-term illnesses.
Ministers claim the reforms are necessary to protect the long-term survival of the welfare system and encourage more people to return to work.
Kendall Appeals to Values, Not Just Numbers
Work and Pensions Secretary Liz Kendall addressed the Parliamentary Labour Party last night in an attempt to calm the storm.
She insisted the proposed changes are based on fairness and compassion—not just budget cuts.
“This is about helping people reach their full potential,” she said.
“It’s about giving them real opportunities and the support they need to pursue their dreams.
That’s the better future we’re building.”
What Comes Next?
All eyes are now on the July 1 Commons vote.
If the amendment passes, it will effectively block the bill and force the government to start from scratch.
Speaker Sir Lindsay Hoyle must first decide whether to accept the amendment for debate.
Until then, the battle over welfare reform is far from over—and it’s one that could define Starmer’s government for years to come.