Labour has 'moral imperative' to fix 'failing' welfare system, PM declares after benefits U-turn

The Prime Minister made a slew of concessions after attempts to phone around rebel MPs failed, with the PM facing the very real prospect of a rebellion.

It comes as more than 120 Labour MPs opposed his Government's welfare reforms, as they readied themselves to vote against the Universal Credit and Personal Independence Payment (PIP) Bill.

Sir Keir said that the concessions strike “the right balance” after it was announced those currently receiving PIP would still get it in a bid to appease rebel MPs.

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Speaking from the Welsh Labour conference on Saturday morning, the PM defended his u-turn as he said his Government have been forced to make “difficult choices” since entering power a year ago.

He told the conference that any changes to the welfare state must be made in a “Labour way.”

“We cannot take away the safety net that vulnerable people rely on, and we won’t, but we also can’t let it become a snare for those who can and want to work,” he said.

“Everyone agrees that our welfare system is broken: failing people every day, a generation of young people written off for good and the cost spiralling out of control.

“Fixing it is a moral imperative, but we need to do it in a Labour way.”

In the same speech, Starmer branded Reform UK leader Nigel Farage a "wolf in Wall Street clothing."

Starmer had said any deal between the Tories, Reform UK and Plaid Cymru at next year’s key elections in Wales would amount to a “backroom stitch-up”.

The Prime Minister said it would risk a “return to the chaos and division of the last decade” and risk rolling back the progress his party is starting to make.

He told the Welsh Labour conference in Llandudno it would be “working families left to pick up the bill”.

“Whether that’s with Reform or with Plaid’s determination to cut Wales off from the rest of the country, with no plan to put Wales back together,” he said.

“I know that these are the parties that talk a big game, but who is actually delivering?”

Conservative Party leader Kemi Badenoch has not ruled out making deals with Plaid Cymru or Reform at the next Senedd election.

A group of some 150 demonstrators waving Palestinian flags were pictured outside the venue in Llandudno where they stood for a few minutes to the beat of a drum.

A small group of pro-Israel protesters shouted “free the hostages” and held signs saying “free Gazans from Hamas”.

Some 126 Labour backbenchers had signed an amendment that would have halted the Universal Credit and Personal Independence Payment Bill in its tracks when it faces its first Commons hurdle on July 1.

The list of Labour MPs putting their name to the amendment had been growing throughout the week, as Downing Street said that they would be pressing on with next week’s vote.

After the late-night U-turn, Sir Keir said that “the most important thing is that we can make the reform we need”.

“We talked to colleagues, who’ve made powerful representations, as a result of which we’ve got a package which I think will work, we can get it right,” he added.

While leading rebels believe the concessions are likely to be enough to win over a majority, some remain opposed to the plans in their current form.