- Prime Minister Sir Keir Starmer has defended his plans to reform the welfare system after a revolt from Labour backbenchers led to a U-turn on planned cuts.
- The Labour leader pledged to main a “safety net” for vulnerable people, but said the welfare system should not hinder those who can and want to work.
- He said the welfare system is “broken” and “failing people every day”. It still needs reform, he said, but “we need to do it in a Labour way”.
- Economists warn that the U-turn, which protects existing disability and health benefits, will create a multibillion-pound hole in public finances.
- This financial shortfall is expected to be covered by tax rises, potentially through measures like freezing income tax thresholds.
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