Summary

  • Rachel Reeves has the prime minister's "full backing", a Downing Street spokesman says, after the chancellor was seen crying in the House of Commons

  • Asked why Reeves was tearful, her spokesperson says: "It's a personal matter, which - as you would expect - we are not going to get into"

  • Allies of Reeves later say she was upset after an altercation with Commons Speaker Lindsay Hoyle - although no-one the BBC spoke to witnessed the interaction personally

  • The scenes in the Commons were noticed in the financial markets, with the cost of government borrowing subsequently rising, the BBC's Faisal Islam writes

  • At the same session of Prime Minister's Questions, Conservative leader Kemi Badenoch says people are "frightened" of tax rises and asks Starmer to rule them out

  • Starmer responds: "No prime minister or chancellor ever stands at the dispatch box and writes budgets in the future

  • Last night, the government's welfare bill was approved by 335 votes to 260 after ministers made last-minute concessions to avoid possible defeat

Media caption,

Reeves appears tearful during PMQs

  1. A simple guide to the planned changes to Pip and universal creditpublished at 14:37 British Summer Time 30 June

    Personal independence payment (Pip) is paid to 3.7 million people who have a long-term physical or mental health condition in England and Wales - up from 2.1m in 2019.

    There are two elements - a daily living component and a mobility component. Claimants may be eligible for one or both.

    The government now plans to tighten daily living assessments for future claimants - this will not affect those already receiving Pip, and the mobility element is not affected.

    It also announced changes to universal credit (UC), a payment made to people to help with their living costs. More than three million recipients of UC have no requirement to find work due to their health, a number that has risen sharply.

    If you have limited capacity to work because of a disability or long term condition, the UC payment you receive more than doubles, because of an extra top-up.

    Under the government's proposals, claimants will not be eligible to get this incapacity top-up until they are aged 22 or over. And new claimants will also see the value of this top-up fall.

  2. How we got here, in 99 wordspublished at 14:32 British Summer Time 30 June

    A woman holds a sign that reads care not cutsImage source, Getty Images

    Back in March, the government announced significant benefits changes, aimed at cutting welfare spending.

    But they proved unpopular with a large group within Labour, and faced criticism from opposition parties.

    As the first parliamentary hurdle drew nearer, so grew MPs’ disquiet.

    Then last Thursday, after 126 Labour MPs threatened to vote down the proposals, the government confirmed major concessions, including:

    • Limiting cuts to personal independence payments (Pips) to new claimants
    • Reversing plans to freeze the health-related component of universal credit

    Today, the work and pensions secretary will share more details in the Commons, ahead of a vote on Tuesday.

  3. Government to outline welfare concessions ahead of key votepublished at 14:29 British Summer Time 30 June

    Liz KendallImage source, PA Media

    Work and Pensions Secretary Liz Kendall will later this afternoon set out to Parliament the details of concessions the government has made to proposed welfare changes.

    Last week, Prime Minister Keir Starmer was forced into a U-turn over his planned benefits changes, after more than 120 Labour MPs threatened to vote down his plans.

    The deal with rebel MPs suggests the welfare reforms will only save £2bn a year, rather than the £5bn they were expected to save by 2030.

    Ministers are hoping the concessions will help limit the rebellion ahead of a key vote on the bill tomorrow - but dozens of Labour MPs are believed to still have misgivings, and could defy the government in Tuesday's vote.

    Stick with us as we follow Kendall's statement live - due at around 15:30 BST.