Keir Starmer is facing the biggest rebellion of his premiership as dozens of Labour MPs threaten to vote against freezing disability benefits. The Guardian understands that many MPs have urged the government to reconsider plans to cut billions from the rising welfare bill, with particular concern over changes to Personal Independence Payments (Pip).
In an attempt to avoid a damaging showdown, Downing Street began inviting groups of Labour backbenchers to meetings on Wednesday, stressing the 'moral case' for reforms designed to get people back to work. However, some attendees revealed that No 10 officials appeared taken aback by the scale of anger, especially from new MPs who have been loyal until now.
Senior government figures have signalled they may still be open to change, but any climbdown could leave Chancellor Rachel Reeves with a major fiscal hole. Freezing Pip would almost certainly require a vote on primary legislation, as certain benefits are protected by the Social Security Administration Act 1992, which mandates annual inflation increases.
Given the government's large majority, there is little chance of failing to push through changes, but some Labour MPs said they would struggle to vote for measures that take money from the poorest. One MP told the Guardian: 'We’re in government and I feel utterly useless. They [No 10] will understand our frustrations, though largely private, when we get a chance to vote.'
Ministers hope that plans to reform employment schemes, backed by about £1bn in funding, will win over worried MPs. Work and Pensions Secretary Liz Kendall is expected to announce the plans early next week, having secured savings for employment support despite tensions with the Treasury over the value of such schemes.
At Prime Minister's Questions, Starmer acknowledged the worries of disabled people but insisted the system is 'broken' and must be reformed. The bulk of almost £6bn in cuts will come from Pip, with eligibility criteria tightened and some payments frozen, though the benefit will not be means-tested.
