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.