Sir Keir Starmer Withdraws Welfare Reform from King's Speech After Labour Uprising

Sir Keir Starmer's administration has opted not to include a second attempt at welfare system reform in the King's Speech scheduled for Wednesday. This decision comes after a substantial backlash from Labour Members of Parliament in June 2025, which forced the government to abandon its initial proposals.

The previous attempt sought to implement considerable alterations to the welfare framework, notably by restricting eligibility for certain health-related benefits. That initiative led to widespread opposition within Labour's ranks and an embarrassing reversal for the government.

Despite this setback, ministers have since announced two reviews aimed at generating fresh ideas for welfare reform, alongside several measures designed to incentivise employment. However, it is understood that the government is not yet prepared to table a new parliamentary bill on welfare, consequently excluding it from this week's legislative agenda.

This means that any forthcoming welfare legislation will not be introduced to Parliament until mid-2027 at the earliest. This delay persists despite welfare reform being identified as a primary policy objective for the current government. While some Labour MPs who opposed the previous proposals may welcome the deferral, others within the party are likely to interpret it as a sign of the Prime Minister's increasing difficulty in advancing the government's agenda.

A government source indicated that reforms are progressing without new legislation, citing 'right to try' rules enabling individuals with health conditions to work without immediate benefit reassessment, and guaranteed paid work placements for 18-to-21-year-olds who have been out of employment or education for over 18 months.

A significant factor impeding new legislation is the ongoing Timms Review, which is examining the Personal Independence Payment (PIP) system. The government committed to this review as part of its climbdown on benefit cuts last year. Led by Sir Stephen Timms and organisations representing disabled people, an interim report is expected in July, with the final report due later this year.

Additionally, a report by Alan Milburn, a former health secretary, focusing on the increasing number of young people not engaged in work or study, is expected within weeks. Milburn's comments during his research, including observations about Britain 'writing off' a generation with 'normal' mental health conditions, could prove contentious among Labour MPs. A government source affirmed: "The system we inherited is not fit for purpose, and we are determined to change it and spread opportunity as the best way to tackle welfare dependency. The pieces of work we've commissioned will inform legislation we bring forward."