By Christopher McKeon
Sir Keir Starmer has insisted welfare reform is still on the table as he took the blame for Tuesday鈥檚 U-turn in the face of a major backbench rebellion.
In an interview with the BBC, the Prime Minister acknowledged his Government did not 鈥済et the process right鈥 and failed to 鈥渆ngage in the way that we should have done鈥 on welfare changes.
But he added his Government would 鈥渃ome through it stronger鈥 as he vowed to 鈥渞eflect鈥 on what needed to be done 鈥渢o ensure we don鈥檛 get into a situation like that again鈥.
Despite the setback, which saw changes to the personal independence payment (Pip) stripped out of his welfare legislation, Sir Keir said on Thursday his Government was 鈥減ressing on with welfare reform鈥.
Answering questions at the launch of Labour鈥檚 NHS plan, he said: 鈥淚t is important we reform the system. Welfare isn鈥檛 working.鈥
The Prime Minister went on to praise disabilities minister Sir Stephen Timms, who is now leading a review of Pip, saying he was 鈥渁 thoroughly decent man of huge integrity that we can have faith in to do the review and make the changes that are necessary鈥.
Sir Keir鈥檚 U-turn saw planned changes to Pip eligibility put off until after Sir Stephen has completed his review of the benefit next autumn, leaving only changes to universal credit to go forward.
That decision has caused a fiscal headache for Chancellor Rachel Reeves, with the 拢4.8 billion of savings the reforms were expected to deliver now unlikely to materialise.
Economists have warned that this is likely to mean further tax rises in the autumn, and the Prime Minister did not rule out the possibility on Thursday.
Ms Reeves has previously promised she would not need to repeat the 拢40 billion tax raid she set out in October 2024.
Asked if he would repeat that commitment, Sir Keir said: 鈥淣o prime minister or chancellor is going to write a budget in advance, but we did really tough stuff in that budget last year.鈥
But he added that last year鈥檚 budget had already done much of the 鈥渉eavy lifting鈥 on repairing the public finances.
The Chancellor also declined to 鈥渟peculate鈥 about tax rises ahead of the budget, but told broadcasters there was 鈥渁 cost to the welfare changes that Parliament voted through this week and that will be reflected in the budget鈥.
Ms Reeves herself appeared alongside Sir Keir and Health Secretary Wes Streeting at the launch of the NHS plan on Thursday, a day after she had appeared visibly tearful in the Commons during Prime Minister鈥檚 Questions.
The Chancellor told broadcasters it had been related to a 鈥減ersonal issue鈥, while Sir Keir gave her his full backing, adding: 鈥淚 think it鈥檚 just fantastic she鈥檚 here and, as I say, none of this would be happening if she hadn鈥檛 taken the decisions that she鈥檚 taken.鈥
Questions about the Chancellor鈥檚 future had sparked a sharp fall in the value of UK government bonds on Wednesday, but the markets rallied on Thursday morning following repeated reassurances she was safe in Number 11.
But Conservative shadow chancellor Sir Mel Stride said the scenes in the Commons over the past week had left bond markets 鈥渢witchy鈥 about the Government and 鈥渢heir ability to actually grip things like spending going forward鈥.