Economic Policy

Starmer’s Welfare U-Turn Reveals Weakness Amid Fiscal Recklessness

By Economics Desk | June 27, 2025

British Prime Minister Keir Starmer caves to internal party rebellion, diluting welfare reforms meant to curb spending and restore fiscal sanity, exposing the deep divisions and lack of backbone within the Labour Party.

British Prime Minister Keir Starmer has been forced into yet another humiliating retreat over his government’s welfare reform agenda. The once confident center-left leader bowed to intense pressure from within his own Labour Party, watering down critical plans to tighten eligibility for disability benefits. This capitulation highlights a troubling pattern of indecision and weakness at the heart of Starmer’s administration — a government caught between its rhetoric of fiscal responsibility and the demands of a restless political base. The original proposals would have tightened access to the Personal Independence Payment (PIP), potentially saving £5 billion annually by removing benefits from...

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