Almost a year after the government’s historic election and catapult into Downing Street, Labour is dealing with a significant rebellion over proposed cuts to Universal Credit and stricter criteria for PIP (Personal Independence Payment). Despite concessions — excluding current claimants and introducing a “right to try” employment scheme — around 50 Labour MPs are expected to oppose the bill completely, with 123 having already signed an amendment opposing the measure last week.
Led by the Treasury Select Committee chair, Meg Hillier, the amendment raises concerns the proposals could push up to 250,000 people, including 50,000 children, into poverty.
With The Times describing it as Sir Keir Starmer’s toughest week as Prime Minister, the government has so far made U-turns in line with the rebels’ demands, announcing in a statement the cuts will now only apply to new claimants instead of the originally planned cuts to disability and sickness-related payments for existing and future claimants.
Admitting he had been distracted by events abroad, with the conflict in the Middle East and ensuring the recent NATO summit was a success taking his focus, the Prime Minister sought to take full responsibility for the row.With several anonymised briefings aiming to point the blame at Downing Street Chief of Staff, Morgan McSweeney, in the same interview with The Times, the article hypothesises this was the driving force in the Prime Minister seeking full accountability – citing accusations of having misread the mood of the parliamentary Labour Party as the reason behind the briefings against him.
To ease tensions, Secretary of State for Work and Pensions, Liz Kendall, is expected to do her best to calm the rebels this afternoon with a Commons statement outlining concessions to the welfare cuts. This will kick off two days of questioning from less-than-happy backbenchers on the hot topic.
Undoubtedly keen to focus on other issues, this week will also see the Health Secretary, Wes Streeting, announce the 10-Year Health Plan, aimed at moving the nation’s health from 'hospital to community'. Unveiling a range of measures over the weekend, the Health Secretary has already highlighted plans to close hundreds of NHS quangos and announced by 2035, 1 in 8 surgeries will be performed by robots.
He also revealed supermarkets will be ordered to reduce up to 100 calories from the average shopping basket. Ministers are set to introduce a “healthy food standard” that will require stores to cut sales of sugary and salty snacks in favour of more fruit and vegetables.
Shops that fail to meet the mandatory targets could face fines, which retail sources warned could lead to higher prices. However, Downing Street hopes these changes can help prevent future tax hikes by reducing the £11 billion a year obesity costs the NHS.
Elsewhere, to the Chancellor’s relief — and likely boosting morale across Downing Street — the UK economy grew by 0.7 per cent between January and March, according to the Office for National Statistics (ONS).
Resulting in UK being the fastest growing economy in the G7 across the first quarter of the year, the ONS’s timely announcement revealed that GDP increase was driven by growth across all three main sectors, including within the services, construction and production industries.
As the government continues to grapple with internal discord and mounting pressure over its welfare reform agenda, this week marks a pivotal test of the government’s ability to balance economic optimism with political stability.
The team at Atticus Partners, whilst keeping cool, will be busy monitoring this, as we continue to update clients on the impending ramifications of the Health Plan.
What’s on in Parliament
Monday 30th June
House of Commons
- Oral questions: Defence
- Ministerial statement: Welfare Reform
- Westminster Hall Debate: Driven grouse shooting
House of Lords
- Oral questions: Deep-sea mining in international waters
- Oral questions: Index on Censorship and school libraries
- Oral questions: Humanist weddings
Tuesday 1st July
House of Commons
- Oral questions: Treasury
- Ten Minute Rule Motion: Clean Air (Human Rights)
- Westminster Hall Debate: Regulatory powers over billing of energy supply to businesses
House of Lords
- Oral questions: Attaining a global treaty to counter plastic pollution
- Oral questions: Standard of hotel accommodation provided to migrants who have entered the UK in small boats from France
- Legislation: Renters’ Rights Bill – Report Stage (day one)
Wednesday 2nd July
House of Commons
- Oral questions: Northern Ireland
- Prime Minister’s Question Time
- Adjournment: Regulatory environment of corporate businesses and franchises
House of Lords
- Oral questions: Introducing legislation to regulate the procurement and use of facial recognition technology by the police
- Oral questions: Representations to the government of India about the position of minorities in that country
- Legislation: House of Lords (Hereditary Peers) Bill - Report Stage (day 1)
Thursday 3rd July
House of Commons
- Oral questions: Culture, Media and Sport
- Business Questions to the Leader of the House
- Westminster Hall Debate: Future of Music Education
House of Lords
- Oral questions: Providing further financial assistance to housing associations
- Oral questions: State of UK-EU defence and security co-operation
- Legislation: Children’s Wellbeing and Schools Bill – Committee Stage (day 8)
Friday 4th July
House of Commons
- Private Members Bills
House of Lords
- Legislation: Mortgage Prisoners Inquiry Bill - Third Reading
- Debate: Constitution Committee Report: 'Executive Oversight and Responsibility for the UK Constitution'
- Legislation: Still-Birth (Definition) Bill - Second Reading
- Legislation: Imprisonment for Public Protection (Resentencing) Bill - Committee Stage
Consultations
- Public Procurement: Growing British Industry, Jobs and Skills - Consultation on Further Reforms to Public Procurement – closes 5th September 2025
- The Fair Funding Review 2.0 – closes 15th August 2025
- Improving Car Driving Test Booking Rules – closes 23rd July 2025
Statistics
- Intergenerational offending: A Narrative Review of the Literature – Updated 27th June
- Air Quality Statistics – Updated 27th June
- Diversity in UK Tech – Published 26th June