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. Politicians react to vote outcomepublished at 20:43 British Summer Time 1 July

    Brian Wheeler
    Reporting from the House of Commons

    We've been hearing mere from politicians after the result of the vote was announced:

    • Leading Labour rebel Richard Burgon tells me he still thinks the bill could be defeated when it moves to its next Commons stage "if the government doesn't deliver on its promises"
    • Liberal Democrats leader Ed Davey tells PA news agency: "This is no way to run a country" and urged the government to scrap the bill"
    • Leader of Scottish Labour Anas Sarwar says he would "absolutely not" slash benefits for disabled people in Scotland if he became first minister
    • Reform UK's Richard Tice lays into the “catastrophic” and shambolic” events of the past few hours. “What we should doing is targeting the abusers, the skivers, the idlers," he says
    • Meanwhile Green MP Sian Berry says she will be watching the government very closely, and there is "every chance they will mess it up again by next week"
  2. What effect do the new concessions have on public finances?published at 20:34 British Summer Time 1 July

    Ben Chu
    BBC Verify policy and analysis correspondent

    The new concessions make the outlook for the public finances more uncertain and could well reduce Chancellor Rachel Reeves’ headroom against her chosen borrowing rules even further in the Autumn Budget.

    The Office for Budget Responsibility (OBR) had originally scored around £5bn a year of savings from the original welfare reform package by 2029-30.

    The initial concessions - including ensuring that existing Pip recipients would not lose any benefits - had halved the projected 2029-30 savings to £2.5bn, according to the government’s estimates.

    Delaying the implementation of Pip reforms for new claimants until the Timms review has reported means even those £2.5bn of savings might not be scored by the OBR in the Autumn Budget.

    The OBR traditionally does not score savings from policies until the details of those policies are clear.

    The upshot is that fiscal experts suspect the OBR might rule in the Autumn Budget that public spending will be around £5bn higher than assumed in the Spring Statement in March - because those welfare savings are now either cancelled or too uncertain to be scored yet.

    That alone would effectively halve the £9.9bn of headroom the Chancellor had pencilled in against her chosen borrowing rules in 2029-30.

  3. Labour has had 'a bit of an argument about principle', MP sayspublished at 20:29 British Summer Time 1 July

    Alex Forsyth
    Political correspondent

    The Labour MP behind the amendment designed to block the government’s welfare reforms says the party will “come together again”.

    Rachael Maskell says “like any family we’ve had a bit of an argument about principles”.

    She goes on to say the party could move forward if it worked together - but added a warning. If there’s “obstinance and continuation of disengagement”, she says, that could create problems in the future.

    That’s a clear message to Downing Street and the government.

    Many backbench Labour MPs felt they just hadn’t been listened to, and they want that to change.

  4. Forty-nine Labour MPs vote against welfare reform billpublished at 20:25 British Summer Time 1 July

    We're now taking a closer look at how MPs voted on the welfare reform bill - which according to the Parliament website breakdown passed by 336 for to 261 against.

    Of the 336 MPs who voted for the bill - there are 333 Labour and three Independents.

    The 261 MPs who voted against are made up of 100 Conservatives, 70 Liberal Democrats, 49 Labour and 42 from other parties.

    In total, 45 MPs did not vote.

    A chart showing a breakdown by party of MPs who voted for, against and did not vote on the Universal Credit and Personal Independence Payment Bill. The 336 MPs who voted for were made up of 333 Labour and 3 Independent MPs. The 261 MPs who voted against were made up of 100, Conservative, 70, Lib Dem, 49 Labour, and 42 MPs from other parties. The 45 MPs who did not vote were made up of 18 Labour, 16 Conservative, 2 Liberal Democrat and 9 MPs from other parties. Excludes tellers, speakers and deputy speakers. These figures are as reported on the Parliament website, based on MPs passes scanned during voting. Totals can differ from those counted by tellers and announced in the House of Commons.
  5. What just happened?published at 20:18 British Summer Time 1 July

    After hours of relentless and impassioned debating of the government's Universal Credit and Personal Independence Payment (Pip) Bill, we've had a flurry of results.

    The amendment to kill the bill failed:

    • It was rejected by 328 to 149, a government majority of 179
    • A total of 42 Labour MPs voted for that amendment - in other words, to reject the government's bill

    The second reading of the welfare reform bill passed:

    • With 335 votes for and 260 against
    • That's a majority of 75, and means the bill will now progress to the next stage of parliamentary scrutiny

    What does it all mean?

    What has been said?

    • Work and Pensions Secretary Liz Kendall told the BBC's Chris Mason there are "lessons to learn" but it's important that the bill was passed
    • Shadow Work and Pensions Minister Helen Whately said the bill was "ripped apart in front of our eyes' this afternoon, calling it a "shambles"

  6. 'Bumpy time': Kendall says she's pleased bill has passedpublished at 20:10 British Summer Time 1 July

    Media caption,

    'It's been a bumpy time tonight, but we go forward'

    More now from Liz Kendall, who's asked what's left in the bill after all the concessions.

    She says "there's some really important changes" coming, including to universal credit and the right to try - which aims to give people the confidence to work without putting their benefits at risk.

    Kendall adds that she is pleased this bill has passed, but "there is more to do".

    Asked if this shows that the Labour Party is not willing to take on reforming the welfare state, Kendall says "welfare reform is always difficult because it touches on the lives of millions of people".

    "But we need to make changes," she says.

    Kendall adds that tonight has been a "bumpy time", but "we will go forward together".

  7. There are absolutely lessons to be learned, Kendall sayspublished at 20:03 British Summer Time 1 July

    Liz Kendall

    Speaking to the BBC's political editor Chris Mason after the vote, Work and Pensions Secretary Liz Kendall is asked: "Whose fault is this shambles?"

    Kendall responds by saying: "I wish we had got to this point in a different way, and there are absolutely lessons to learn".

    "But I think it's really important we passed this bill."

    Asked if her position is tenable, Kendall says "listening is a strength in politics... and I'll continue to listen to colleagues".

    Asked if she wants to carry on in her position, she says: "Absolutely."

  8. Labour rebel describes 'shambolic process'published at 19:51 British Summer Time 1 July

    Brian Wheeler
    Reporting from the House of Commons

    Labour MP Paula Barker - who spoke against the bill in the debate - tells me she is disappointed by the result.

    “I am not sure all colleagues understand what they voted for,” she adds

    It was an “unedifying” and “shambolic” process, she says, but she hopes it will trigger a “reset” in the government’s relationship with its own MPs.

    “We all want the Labour government to succeed,” she tells me.

  9. Forty-two Labour MPs voted for amendment to kill government's billpublished at 19:40 British Summer Time 1 July
    Breaking

    Let's take a closer look at the first vote tonight, on Rachael Maskell's reasoned amendment that would have killed the government's bill.

    As we reported earlier, it failed by 328 votes to 149. But data just published on the Parliament website shows the breakdown.

    A total of 42 Labour MPs voted for that amendment - in other words to reject the government's bill.

  10. Shadow minister asks Speaker if bill can be withdrawnpublished at 19:34 British Summer Time 1 July

    Just after the vote, shadow work and pensions minister Helen Whately asks the Speaker if the bill should still be "rushed through" to be debated next week at committee stage, or be withdrawn by the government entirely.

    She says the bill was "ripped apart in front of our eyes" this afternoon, calling it a "shambles".

    The Speaker says scheduling is a matter of the government, not the chair.

  11. Analysis

    Don't expect today's vote to be the end of the debatepublished at 19:31 British Summer Time 1 July

    Alex Forsyth
    Political correspondent

    Ministers might breathe a sigh of relief at having won this vote after last-minute concessions, but the government’s majority has been vastly reduced.

    It’s a sign of just how much unhappiness there’s been at these welfare reforms on Labour’s backbenches.

    And don’t expect this to be the end of it. Lots of Labour MPs signalled during today’s debate that they still have plenty of concerns and questions.

  12. Welfare reform bill passes after last-minute concessionspublished at 19:25 British Summer Time 1 July
    Breaking

    MPs have voted in favour of the government's bill - by 335 votes for, to 260 against.

    That's a majority of 75, and means the bill will now progress to the next stage of parliamentary scrutiny.

    A bar charts shows the for and against for the welfare bill - 335 for and 260 against
  13. Little surprise that amendment was rejectedpublished at 19:18 British Summer Time 1 July

    Brian Wheeler
    Reporting from the House of Commons

    No real surprise there as Rachael Maskell’s reasoned amendment - which would have killed the bill - is rejected by 328 to 149.

    That's a government majority of 179.

  14. MPs vote down amendment to welfare changespublished at 19:13 British Summer Time 1 July
    Breaking

    The amendment to reject the government's welfare bill has failed, with 149 votes for to 328 against.

    This means the bill itself will now go to a vote. Stay with us for the outcome.

    Bar chart shows defeat amendment - 149 For to 328 against.
  15. Starmer chats to MPs ahead of votepublished at 19:08 British Summer Time 1 July

    Alex Forsyth
    Political correspondent

    I just spotted the prime minister in the House of Commons as MPs start these crucial votes - he was chatting to MPs behind the Speaker’s chair.

    Whatever happens in the next half an hour there will be big questions about how Keir Starmer, and his government, have handled this.

  16. Debate ends with last-minute attempt to reassure Labour MPspublished at 19:03 British Summer Time 1 July

    Alex Forsyth
    Political correspondent

    Just before MPs were called to vote, a point was raised by the Labour MP Peter Lamb which summed up the crux of concern for many Labour backbenchers.

    He asked whether the review of Pip would be conducted “in a spending envelope” – which basically means will it be designed to save money.

    The minister, Stephen Timms, said the review is not intended to save money, rather it’s meant to “get the assessment right”.

    That’s a last minute attempt to reassure Labour MPs who’ve been worried that this whole process has been about saving money rather than the meaningful welfare reform ministers, and others, say is needed.

  17. MPs to vote on amendmentpublished at 19:01 British Summer Time 1 July
    Breaking

    Division is called and MPs clear the Commons to vote.

    The first vote is on the reasoned amendment, tabled by Labour's Rachael Maskell. If that's unsuccessful, MPs will then go to vote on the bill.

    This will take a little while, so bear with us. We'll update you on the break down of the votes as soon as we get the numbers.

  18. Chaos is an understatement, shadow minister sayspublished at 18:51 British Summer Time 1 July

    Helen Whately speaking in the CommonsImage source, House of Commons

    Shadow Work and Pensions Secretary Helen Whately says the bill has "more or less disintegrated" during this afternoon's debate.

    "Describing this as chaos now seems like an understatement," she says.

    "The government is serving up a bill with next to nothing in it. They'd already U-turned once, it seems they can't even deliver a U-turn."

  19. MPs returning to the chamberpublished at 18:48 British Summer Time 1 July

    Brian Wheeler
    Reporting from the House of Commons

    The chamber is starting to fill up ahead of the big vote.

    Liz Kendall has returned and Kemi Badenoch has taken her place on the opposition front bench.

  20. I popped out for banana. When I got back, things had changed again, says Labour MPpublished at 18:47 British Summer Time 1 July

    Mary Kelly Foy speaking in the CommonsImage source, House of Commons

    Labour's Mary Kelly Foy is speaking now. She says she popped out for a banana earlier on and when she returned, "things had changed again".

    "These proposals are so unfair," she continues.

    "How can we be asked to vote for a system... that has been tweaked to penalise people based on when they got ill, or when they get more ill."

    Kelly Foy, who is the MP for the City of Durham, says the changes to Pip will have a bigger impact on the North East than almost any other region in the country.

    "This isn't a level playing field," she says.