Despite advancing a contentious welfare reform bill in Parliament, Prime Minister Keir Starmer encounters substantial dissent from within the Labour Party, marking a critical moment in his leadership.
U.K. Prime Minister Faces Major Challenge Over Welfare Reform

U.K. Prime Minister Faces Major Challenge Over Welfare Reform
Keir Starmer’s leadership is put to the test as his government navigates significant rebellion over proposed social welfare cuts.
U.K. Prime Minister Keir Starmer confronted one of the most significant challenges to his leadership on Tuesday, July 1, 2025, as a bill aiming to overhaul Britain’s social welfare system sparked an internal uprising among Labour lawmakers. Although the government narrowly passed the legislation with a vote of 335 to 260, the internal divisions displayed by his party raised questions about the cohesiveness of Starmer's leadership following a year in power.
The proposed reforms were outlined as measures to alleviate the burgeoning welfare expenditures through stricter eligibility standards for disabled individuals, potentially impacting hundreds of thousands of British citizens. In response to mounting pressure from a faction of his own party—where over 120 members threatened to oppose the legislation—the Prime Minister conceded to restrict these changes to new claimants. This modification, however, resulted in projected savings of only £2 billion ($2.7 billion) annually, a significant decrease from the initial estimate of £4.8 billion by 2030, presenting a complicating issue for Chancellor of the Exchequer Rachel Reeves.
The outcome of Tuesday’s vote is a stark reminder to Starmer of the discontent among his colleagues, as the 335 votes represent a mere fraction of Labour’s more than 400 members in Parliament. Despite edging closer to passing the bill, the Prime Minister faces an uphill battle in uniting his party as it prepares for subsequent sessions in the House of Commons next week.
The discontent seen in the U.K. stands in contrast to the political climate in the United States, where discussions surrounding similar welfare reductions have experienced less party opposition, showcasing a contrasting landscape for social welfare policy between the two nations.