Labour rebels react after government welfare bill U-turn

Is your MP planning to rebel on welfare?

Things have changed since Thursday, when at least 127 Labour rebels had backed a "reasoned amendment" to the government's welfare bill.

Overnight, Sir Keir Starmer agreed a number of concessions to the policy, largely around the proposed changes to personal independence payments and universal credit.

Despite this, a number of MPs still aren't happy - and have said they will be voting against the bill when it returns to the Commons on Tuesday.

Use the search tool below to see if your MP is a potential rebel:

Iron chancellor is looking increasingly wobbly as a black hole opens in public finances

The government always knew slashing welfare spending would be highly controversial among its own MPs and traditional supporters - although much more popular with right wing voters.

Just a few days ago, Sir Keir Starmer dismissed the concerns of rebel MPs as "noises off", arguing his government was "reading the room" in its efforts to reform a "broken system" that has seen the welfare bill spiralling in recent years. 

Spending on working age disability and incapacity benefits is up £20bn since the pandemic, and is set to increase by almost that much again by the end of this parliament, to £70bn a year.

But while most in his party agree with the claim that getting more people back into work is in line with Labour values, cutting support for disabled people with the cost of living is much harder to justify.

It highlights the uglier truth that changing the welfare system is about saving money as much as the moral case for reform.  

The chancellor badly needed the planned £5bn in savings to balance the books and stick to her fiscal rules, which was reinforced by the decision to deepen the original cuts after the Office for Budget Responsibility predicted they didn't save as much as the Treasury had thought.

Cutting help for people who struggle to feed or dress themselves has enraged campaigners and MPs and terrified many disabled people.

But now the government has been forced to back track on these plans. They're facing a big black hole in the budget, as the £5bn in savings is baked in to the government finances.

Keeping personal independence payments (PIP) for all claimants is anticipated to cost £1.5bn. 

The Resolution Foundation estimates that figure could rise to £2bn once the linked eligibility for carers' allowance is also taken into account, and calculates that undoing the freeze on the health element of universal credit would cost another £1bn. 

So that's £3bn of the planned £5bn in savings wiped out.

Minister Stephen Kinnock couldn't answer where the money to pay for that would come from this morning, saying we'll have to wait for the budget in the autumn.

But for a government which promised no unfunded spending commitments – the u-turn bill is totting up, with £3bn in undone welfare savings, £1.25bn in winter fuel payments, not to mention all those big promises to NATO on defence spending too. 

The iron chancellor is looking increasingly wobbly.

The government has agreed concessions - but some MPs still aren't happy

As of yesterday, 127 Labour MPs had signed a "reasoned amendment" to Sir Keir Starmer's welfare bill, which questioned the planned reform.

The bill was intended to restrict eligibility for the PIP - the main disability payment in England- and limit the sickness-related element of universal credit, to help shave £5bn off the welfare budget by 2030.

But overnight, the government agreed concessions to this group of rebels, offering adjustments to the "pace of change" to personal independent payments and universal credit.

This has appeased some MPs - including lead signatory Dame Meg Hillier - but not all.

Here's a round-up of Labour members who have publicly said they're still not happy:

Richard Burgon said on X that the changes simply make "a very bad bill less awful". He said it is "nowhere near good enough" and he will "vote against the bill".

Nadia Whittome agreed "these concessions aren't enough and they should worry us all". She will also vote again the bill on Tuesday.

Peter Lamb said the changes are "insufficient when better options have repeatedly been put forward and ignored".

Brian Leishman said the proposed reform amounts to a "two-tier welfare programme that would still put people into poverty".

Rachael Maskell said it is clear that the bill "cannot and must not be saved". She added: "The only option is to withdraw the bill, rethink and start to rebuild trust with disabled people".

Ian Byrne also urged the government to withdraw the bill. He said it is "an awful piece of legislation that will cause huge and lasting damage to my disabled constituents and those across the UK".

Diane Abbott agreed that "dropping it is the only way". She said: "Phoney 'concessions' will not fundamentally improve [the] disability benefit cuts bill".

Clive Lewis said he will be voting against the bill. He said: "This smacks of a face saving exercise more than it does doing right by my sick and disabled constituents".

What are the welfare changes the government has rowed back on?

The government has made significant concessions on personal independence payments (PIP) and universal credit in a bid to quell a Labour rebellion against its welfare reforms.

More than 120 rebels had signed a "reasoned amendment" aimed at overhauling the policy, which significantly tightened eligibility criteria for disability benefits.

But what exactly was the government planning that caused such consternation?

Changes to PIP

The biggest shakeup to the system involved changes to PIP - money given to people including some of whom are in work - who have extra care needs or mobility needs as a result of a disability.

People who claim it are awarded points depending on their ability to do certain activities, such as washing and preparing food, and this influences how much they will receive.

From November 2026, people would need to score a minimum of four points in at least one activity to qualify for the daily living element of PIP - instead of fewer points spread across a range of tasks.

This would have impacted existing claimants as well as new ones. The government's concessions are understood to see this change dropped for existing claimants.

Overhaul of universal credit

The government intended to freeze the health element of universal credit, claimed by more than two million people, at £97 a week during this parliament, and cut the rate to £50 for new claimants.

Again, it's understood the government's concessions mean this change now won't apply to existing claimants.

Electoral Dysfunction: What will Keir Starmer learn from the Labour welfare chaos?

It sounds like concessions are coming for the over 100 Labour MPs who had threatened to rebel over the government's planned welfare cuts.

On this episode, Beth Rigby, Ruth Davidson, and Harriet Harman went over the possible options for the Prime Minister. They also talk about what Keir Starmer needs to learn from the chaos of the past few days.

Plus, is President Trump the "daddy" in his handling of the Israel-Iran conflict, as NATO head Mark Rutte may have suggested?

Remember, you can also watch us on YouTube.

Rebels have 'got as much as we can' from government concessions, says Labour MP

Dame Meg Hillier said the government climbdown over welfare reforms showed the importance of working with backbenchers as they should be "better listened to".

Asked what had "gone wrong" with the "Starmer operation" by the BBC, Dame Meg, one of the leading rebel voices over the reforms, said it is important backbenchers are listened to.

She added: “I think there's huge talent, experience and knowledge in parliament, and it's important it's better listened to, and I think that message has landed.

"I'm really blown away by the talent of my new colleagues in particular, because I didn’t know them before the election.

"Their knowledge and experience was really helpful, and they know a lot about this subject, and I think if they'd been listened to better, we might have been in a better place."

Dame Meg added she thought the rebels had "got as much as we can get in the timeframe involved" from the concessions.

'Every chance' that the Conservatives could back welfare reform, says frontbencher

Now joining Gareth Barlow on Sky News Breakfast is shadow paymaster general Richard Holden.

He says there is "every chance" that the Conservatives would back Sir Keir Starmer's welfare bill when it returns to the Commons on Tuesday.

"We want to see welfare reform," he says. 

"And we've always been very clear that when the government does the right thing, we will work with it.

"That's the reason we'll back that national inquiry into grooming gangs, which we proposed, but they've now come on board with. 

"But I would also say, look, we've seen since the general election a big change. We've seen National Insurance go up through the roof on businesses. 

"That's actually driving more people into unemployment. We've not seen 100,000 people more out of work benefits than at the, than 12 months ago. 

"I'm really concerned about the direction of travel more broadly of this government, and we will call them out."

He went on to insist there has been "no inconsistency" in the Conservatives' approach to welfare.

"We've been very clear if we can see a reduction in cost, if we can see a reduction in claimants and more people in work and also no tax rises, then we can look seriously at the reform package brought forward by the government. 

"But at the moment there's nothing like that on the table. 

"We'll really have to see with this sort of U-turn, overnight, exactly what the government is proposing."

'Not everybody gets everything right from day one'

Continuing his media round this morning, care minister Stephen Kinnock acknowledged that "not everybody gets everything right from day one".

He was being asked about concessions on welfare reforms, which came overnight after 127 Labour MPs backed a "reasoned amendment" to the policy.

Kinnock was asked by LBC if these concessions were a sign of strength or weakness.

He said: "I think that it’s really positive when politicians collaborate, co-operate (and) listen, and that, I think, is when you go out there and talk to people on the doorstep. 

"I think the public appreciates that.

"I think they recognise that not everybody gets everything right from day one."

Kinnock said the government now had "an improved package" before Tuesday's vote, and the new system was "both a safety net for the people who cannot work and a springboard for the people who can".

MPs announce their voting intentions in WhatsApp group - with '50 to rebel'

Our political correspondent Amanda Akass is hearing that MPs are busily discussing their voting intentions in a WhatsApp group this morning.

As a reminder, 127 Labour MPs had yesterday signed a "reasoned amendment" to the government's welfare bill.

However, the government overnight agreed concessions in a bid to calm the burgeoning rebellion.

Amanda hears from one Labour rebel that a WhatsApp group has been created as MPs announce their intentions for the vote next Tuesday,

The MP believes 50 have already said they will vote against the bill.

"It's perfectly plausible we'll get back to bill killing numbers over the weekend," he said.

Minister won't confirm how welfare U-turn will be funded

Next, Stephen Kinnock declined to say how the U-turn on welfare policy will be paid for.

The government had hoped to save £5bn with these reforms, but it has been reported that the changes will now cost the government £1.5bn.

Where will this money come from?

The care minister says: "The fiscal side of it will be set out by the chancellor in the budget in the autumn. 

"I'm sure you'd like me to name specific numbers and set out the budget right now, but I'm not in a position to do that. 

"It's very much the chancellor's job, and she will do that in the autumn."

Pressed again on whether there could be tax rises, Kinnock refuses to speculate.

"Once growth starts really coming back into the economy, I think that definitely helps in terms of raising more money for the exchequer, which is, of course, something that Rachel Reeves will factor into her budget," he says.

Concessions 'a really big step in the right direction', says Kinnock

He is asked about the government's decision to agree concessions to its welfare bill, in the wake of a significant Labour rebellion.

The minister says: "I'm really pleased with  the way the dialogue has happened between ministers and the rest of the parliamentary Labour Party.

"I think what's come forward today is a really big step in the right direction, because we are making it clear that we are protecting existing claimants but we are also initiating a review that will be led by my colleague Stephen Timms the disability minister.

"Disabled people will be at the heart of that review, so it's going to be co-produced with disabled people, about what we do for new claimants coming onto the system after November 2026."

Kinnock says the concessions agreed by the government are a "positive step in the right direction".

But why did it get this far, with 127 Labour MPs backing an amendment to the government's welfare bill.

Kinnock says that changes around the implementation of a bill typically happen at the committee stage, after the second reading scheduled for Tuesday.

"But colleagues are standing up for their constituents, I've got huge respect for their passion and their commitment," he says.

But, Kinnock points out, this has to be balanced with the need for reform.

"Of course you will have some debate and discussion, that is perfectly normal when you are trying to push forward fundamental and complex reforms." 

Police identify seven suspects related to Post Office Horizon scandal

Police investigating the Horizon Post Office scandal have now identified seven suspects, with more than 45 people classed as "persons of interest".

A "scaled-up" national team of officers has been in place for over six months as part of Operation Olympos - dedicated to looking at crimes related to the Horizon Post Office scandal.

The number of suspects has increased to seven since before Christmas, as part of a UK-wide investigation involving 100 officers.

Four have now been interviewed under caution.

Hundreds of subpostmasters were wrongfully convicted of stealing after faulty computer software created false accounting shortfalls in Post Office branches between 1999 and 2015.

Commander Stephen Clayman, Gold Command for Operation Olympos, described a "huge shift" in terms of their investigation and "significant progress".

-SKY NEWS