Labour MP Foxcroft Resigns Over Disability Benefit Cuts as 120+ Labour MPs Rebel; Starmer's £5 Billion Welfare Bill Passes After PIP Concessions

Labour MP Vicky Foxcroft resigned as a government whip in June 2025, citing opposition to planned cuts to disability benefits under Prime Minister Keir Starmer's welfare reform bill. This resignation marked the first frontbencher departure over the controversial welfare proposals. Following Foxcroft's resignation, a substantial rebellion emerged within the Labour Party, with over 120 MPs, including senior figures and committee chairs, signing a reasoned amendment aimed at blocking the welfare reform bill. The bill sought to implement cuts to disability and sickness benefits, including Personal Independence Payments (PIP), with the government targeting savings of approximately £5 billion annually by the end of the decade.

Despite the growing rebellion, Starmer initially vowed to press ahead with the reforms, emphasizing the need to fix what he described as a failing welfare system. However, as opposition intensified, Downing Street entered negotiations with Labour rebels, offering major concessions to the welfare bill. These concessions included softening the criteria for PIP eligibility and adjustments to Universal Credit reforms. The government eventually removed the clause setting out changes to PIP eligibility altogether in an 11th-hour concession to avert a Commons defeat. On July 1, 2025, the watered-down welfare reform bill passed its second reading in the House of Commons by 335 votes to 260, despite the largest rebellion of Starmer's premiership. The concessions are expected to cost the government several billions over the coming years and have significantly weakened the fiscal plans associated with the reforms. Additionally, plans to scrap the two-child benefit cap, which would have saved £3.4 billion, were abandoned following the welfare U-turn. Starmer described the revised welfare reforms as striking the "right balance," but the episode has left his leadership and the government's fiscal strategy under strain.