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Labour Faces Major Revolt Over Welfare Cuts

May 24, 2025
Lawrence Ankutseby Lawrence Ankutse
in UK
0
Labour Faces Major Revolt Over Welfare Cuts

Prime Minister Keir Starmer

Prime Minister Keir Starmer is staring down the largest internal revolt of his leadership, as over 150 Members of Parliament prepare to oppose his government’s forthcoming welfare reform proposals. 

The contentious plan would result in cuts to personal independence payments for an estimated 800,000 individuals, sparking widespread discontent across the Labour ranks.

Behind closed doors, sources say unease is spreading, not just among backbenchers but also within the ministerial ranks. Several parliamentary private secretaries (PPSs) and even sitting ministers are reportedly considering resigning should the government fail to water down the proposed changes.

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One PPS expressed her shock, stating she is “horrified by the direction of the government,” and accused the prime minister of appearing not to care about the growing dissent among his MPs. “He simply doesn’t care what his MPs think,” she reportedly said.

The rebellion is being organized in multiple factions. More than 100 MPs, largely made up of the 2024 intake, have signed a letter addressed to the chief whip, expressing outright opposition to the bill in its present form. Additionally, around 40 other MPs sent a separate warning to Sir Keir Starmer just days earlier, urging him to reconsider pushing forward the cuts without significant changes.

MPs Threaten Resignations Over Controversial Reforms

Multiple sources revealed that approximately five PPSs are prepared to step down if their concerns are not addressed.

Although the rebellion might not numerically defeat the bill in Parliament, such a level of dissent represents a significant challenge to Starmer’s authority and reveals a growing discomfort with the policy direction of his administration.

This surge in opposition comes on the heels of the prime minister’s dramatic reversal earlier in the week regarding planned cuts to winter fuel payments. After a sustained backlash from both voters and Labour MPs, Starmer walked back on Chancellor Rachel Reeves’ contentious decision to withdraw the payments from 10 million pensioners.

As a partial climbdown, the prime minister acknowledged the public outrage, stating he intended to explore options to expand eligibility “as the economy improves.” The means-testing of the winter payment — formerly distributed to all pensioners — was widely viewed as a misstep that contributed to Labour’s poor performance in the recent local elections. In those elections, Nigel Farage’s Reform Party surged, capturing 677 council seats across England.

But despite this U-turn, scepticism remains. Many MPs have not been placated, particularly because the government’s revised position lacks detail. So far, Number 10 has declined to clarify whether the fuel payment changes will be implemented in time for the coming winter, leaving many elderly citizens uncertain about the months ahead.

To compound the turmoil, the government announced on Friday, May 23, that a flagship initiative aimed at reducing child poverty, originally expected to include the removal of the “cruel” two-child benefit cap, has been postponed until the autumn. The delay has frustrated MPs who were led to believe the cap would be among the first policies reversed.

The welfare reform package, as currently designed, targets reducing the number of working-age people on sickness benefits, a figure that has remained stubbornly high since the pandemic. The government projects the cuts could result in £5 billion in annual savings by the decade’s end. However, critics warn that the price of these savings may be borne by thousands of disabled citizens forced deeper into financial hardship.

Labour Faces Major Revolt Over Welfare Cuts
UK winter fuel payment

Despite the internal backlash, Downing Street has shown no sign of backing down. A spokesperson for the prime minister argued that “the welfare system is fundamentally not working and the argument for reform is overwhelming.”

“We are determined to support people in all parts of the country by tackling poverty and creating secure, well-paid jobs. That’s why we’re creating a sustainable welfare system so it will always be there for those who need it, while genuinely supporting sick and disabled people into work.

“Alongside this, as part of our Plan for Change, we’ve increased the ‘national living wage’, uprated benefits, and are helping over 1 million households by introducing a fair repayment rate on Universal Credit deductions.”

Downing Street spokesperson

As tensions mount, the Labour leader’s ability to unite his party around a cohesive welfare agenda remains in serious doubt.

READ ALSO: Transport Fares Reduces by 15% Amid Fuel Price Drop

Tags: Keir StarmerLabour welfare cutsPersonal Independence PaymentsWinter Fuel Payment
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