Bloomberg UK Politics U-Turn To Where? Questions for Starmer After Benefits Climb Down
Jun 27, 2025
Join John Stepek, writer of Bloomberg's Money Distilled newsletter, as he discusses Keir Starmer's recent policy U-turn on disability entitlements. The decision comes amidst mounting pressure from the left of Labour and threats from Reform UK on the right. Stepek dives into how these dynamics affect government stability and the upcoming fiscal challenges. The conversation highlights the complexities within UK politics, including internal divisions and the transition toward centrist policies while coping with public sentiment.
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U-turn on Disability Benefits
- The benefit cut U-turn means current recipients keep their Personal Independence Payments (PIP), changes apply only to new claimants.
- This tweak aims to appease rebellious MPs, showing internal party pressures do affect government policy.
Starmer's Leadership Under Pressure
- The U-turn is a significant blow to Starmer's leadership authority, showing government paralysis against internal dissent.
- The party leadership faces doubt from MPs about both competence and connectedness since the election victory.
Labour as Uneasy Coalition
- Labour's supposed majority is more like an uneasy coalition with factions resembling splintered European parties.
- This internal division complicates governance and challenges the idea of stable one-party dominance in UK politics.