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Politics
25 June 2025

Labour Faces Major Challenge Over Welfare Bill Vote

Despite strong opposition from 123 Labour MPs, the government pushes ahead with controversial welfare reforms set to save billions and reshape social support

On June 25, 2025, the UK government, led by Prime Minister Keir Starmer and Deputy Prime Minister Angela Rayner, confirmed that a critical vote on controversial welfare reforms will proceed as planned on Tuesday, July 1, despite mounting opposition within their own party and broader political challenges.

The welfare bill, which aims to limit access to personal independent payments (PIP) and health-related components of Universal Credit, has sparked a fierce backbench rebellion. A staggering 123 Labour MPs have backed an amendment calling for a reconsideration of the legislation, enough to potentially derail the bill. This internal dissent has fueled speculation that the vote might be postponed. However, both Starmer and Rayner have stood firm, emphasizing the necessity of reform.

Addressing the House of Commons, Deputy Prime Minister Angela Rayner defended the government's position amid intense scrutiny. She highlighted that the reforms include a £1 billion investment in tailored employment support designed to help more people re-enter the workforce. Additionally, she underscored a commitment to end the reassessments of the most severely disabled individuals who are deemed unable to work, a move intended to provide stability for some of the system's most vulnerable.

Rayner stated, "We want to try to help more people back into work and ending reassessments for the most severely disabled who will never be able to work. Mr Speaker, we will not walk away and stand by and abandon millions of people trapped in the failing system left behind by him and his colleagues." This pointed critique was directed at the previous Conservative government, which Labour accuses of leaving a welfare system that "doesn't work for anyone" and traps people in unemployment.

Conservative MP Sir Mel Stride, standing in for Kemi Badenoch, acknowledged the political drama unfolding, noting the unusual circumstance of Rayner standing in for Starmer for a second consecutive week. He remarked, "It is a pleasure to stand opposite (Ms Rayner), despite what many may think, we have a great deal in common, not least that we both viscerally disagree with the Chancellor's tax policies. And it is great to see (Ms Rayner) standing in temporarily for the Prime Minister for the second week running, although I know there are many sitting behind her who wish this was a permanent arrangement." Stride also highlighted the Labour rebellion, pointing out that 122 Labour MPs oppose the welfare bill, describing it as "dangerously rushed and ill thought through." He pressed Rayner to explain why she believes the reforms are right despite such opposition.

Rayner responded with conviction, "I'll tell (Sir Mel) why we're pressing ahead with our reforms, and that is because we're investing a billion pounds into tailored employment support, a right to try to help more people back into work, and ending reassessments for the most severely disabled who will never be able to work. We won't walk away and stand by and abandon millions of people trapped in the failing system left behind by him and his colleagues." Her remarks underscored Labour's framing of the bill as a progressive effort to overhaul a broken welfare system.

The debate also touched on broader fiscal concerns. Rayner refused to rule out tax rises in the upcoming autumn budget, a sensitive topic given the government's desire to balance welfare spending with fiscal responsibility. She countered Conservative accusations by reminding the Commons that council tax increased every year under the previous Tory administrations and noted that some Tory members of the Local Government Association had even advocated for lifting the cap on council tax increases.

Sir Mel Stride acknowledged that many economists expect tax rises in the autumn budget despite public assurances to the contrary. He asked Rayner to clarify the government's stance, referencing Chancellor Rachel Reeves's earlier promises not to raise taxes again. Rayner dismissed Tory criticisms, saying, "The Tories have no plan, and no credibility. They are asking for no tax rises, but they put taxes up. And they want welfare spending cut, even though it went up when they were in power." The exchange highlighted the political tug-of-war over taxation and government spending priorities.

Meanwhile, Chief Secretary to the Treasury Darren Jones sidestepped direct questions about the financial implications if the welfare bill were to be rejected. Speaking to the Treasury committee, Jones emphasized that government policy remains unchanged and that reforms will proceed. He noted that any changes in demand-led welfare spending would be independently forecasted by the Office for Budget Responsibility and factored into Chancellor Reeves's budget considerations. The bill is projected to save the government approximately £5 billion annually, a significant figure that underscores its fiscal importance.

Labour Chancellor Rachel Reeves reportedly warned MPs that failure to pass the bill would devastate government spending plans, adding pressure on the party to maintain unity despite the internal rebellion.

Beyond welfare, the government is also navigating delicate international and defense issues. At Prime Minister's Questions, Rayner spoke about the UK's efforts to de-escalate tensions in the Middle East, stressing the government's commitment to preventing Iran from acquiring nuclear weapons and expressing grave concern over the situation in Gaza. She called for the release of remaining hostages and the delivery of increased humanitarian aid.

In a related defense matter, the government announced plans to purchase American F-35A fighter jets capable of carrying US tactical nuclear warheads, likely to be stored on British soil. This move has drawn criticism from the Green Party, with MP Ellie Chowns condemning the plan as dangerous and counterproductive to global arms control efforts. She argued, "Nuclear weapons do not make the world safer; they heighten the risk of escalation and mistrust." The debate over nuclear deterrence reflects broader tensions within UK defense policy and public opinion.

Amidst these multifaceted challenges, Labour MP Mike Tapp criticized the Conservatives for abandoning law and order, accusing them of posting "wannabe superhero videos" that highlight problems they created. While Speaker Lindsay Hoyle ruled that this was not a matter for government policy response, the exchange illustrated the ongoing partisan battles in Parliament.

As the July 1 vote approaches, the government appears resolute in pushing forward its welfare reforms despite the internal party rebellion and opposition challenges. Prime Minister Keir Starmer affirmed this stance in a recent interview, stating, "There'll be a vote on Tuesday, we're going to make sure we reform the welfare system." He framed the reforms as a necessary progressive step to fix a system that currently fails many.

The coming days will test the Labour Party's cohesion and the government's ability to navigate political headwinds. With significant financial savings at stake and the welfare system's future hanging in the balance, the outcome of the vote will have profound implications for social policy and fiscal management in the UK.