Starmer has scaled back proposed welfare changes to avoid a Commons defeat, diffusing a potential internal revolt whilst grappling with a multi-billion funding shortfall.

A diluted welfare plan would halve personal savings while thrusting 150,000 people into worsening hardship, triggering internal party rifts, a potential government rebellion led by Starmer, a looming £4bn deficit and growing calls for possible tax hikes—all of which place mounting pressure on the PM.

Keir Starmer faces internal Labour Party opposition over welfare reforms despite attempts to build support, with dozens of MPs prepared to vote against the proposed legislation in what could become a significant parliamentary defeat.

Starmer faces a £4.25bn shortfall following a policy reversal, prompting concerns over potential tax rises and the impact on investor confidence.