Northants campaigner: 'Benefits changes would create a two-tier system that's completely unfair'
MPs voted through the government's welfare reforms last night by 335 votes to 260.
There will be "financial consequences" to Sir Keir Starmer's last-minute climbdown on welfare reform, a Cabinet minister has said, as he declined to rule out tax rises.
Pat McFadden said that ministers "will keep to the tax promises" in their election manifesto.
Rachel Reeves has seen the £4.8 billion predicted savings from welfare changes whittled away through the Government's changes to plans designed to keep backbenchers onside.
In a late concession on Tuesday evening, ministers shelved plans to restrict eligibility for the personal independence payment (Pip), with any changes now only coming after a review of the benefit.
The Prime Minister had a revolt of almost 50 MPs regardless of the changes. Corby MP Lee Barron was one of those.
One Northamptonshire campaigner tells us they're disappointed but not shocked at the way MPs voted last night.
Bowie Taylor is from Rushden and is part of the Crips Against Cuts Northants group:
"We've been talking to them (MPs), we've been emailing them and the apart from Lee Barron, the responses have been the same all around that they just aren't gonna vote against their party and they think that the bill's wonderful and it's not going to hurt anyone."
Bowie says their shocked at these reforms coming from a Labour government. Their mum is currently in the process of applying for Personal Independents Payments (PIP) for autism and ADHD, and fears the reforms will create a two-tier system of different amounts for people, depending on when they applied to receive the benefits:
"That's even more scary because if she doesn't get it before this bill goes through, she might not at all.
"It's not just about my mum, but on a wider scale, people need to live in society as any able bodied person would be able to, to get to work, for example.
"If you will lose it (benefit), they're not going to be able to get to work. If anything, this bill is going to put more people out of work."
Institute for Fiscal Studies
Economists at the Institute for Fiscal Studies (IFS) and Resolution Foundation think tanks warned that Tuesday's concessions meant Ms Reeves could now expect no "net savings" by 2029/30 - a key year for meeting her fiscal targets.
The Institute for Fiscal Studies' incoming director Helen Miller said: "Since departmental spending plans are now effectively locked in, and the Government has already had to row back on planned cuts to pensioner benefits and working-age benefits, tax rises would look increasingly likely.
"This will doubtless intensify the speculation over the summer about which taxes may rise and by how much."
Shadow chancellor Sir Mel Stride said: "Tax rises are on the way to pay for Labour's mismanagement of the economy.
"Hard working families will have an agonising summer waiting to hear how Rachel Reeves will claw back the cash to make up for the failings of this weak Prime Minister."
Despite the last-minute concessions, a total of 49 Labour MPs rebelled and voted against the legislation, the largest revolt of Sir Keir Starmer's premiership.
Overall, the legislation cleared its first parliamentary hurdle by 335 votes to 260, a majority of 75.
The changes were announced by minister Sir Stephen Timms to MPs in the Commons, and came after a first round of concessions offered last week did not seem enough to quell the rebellion.