Portrait of Keir Starmer
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Keir Starmer on Universal Credit

Modified UC support (moderate) Position evolved

Keir Starmer's government has taken action on Universal Credit (UC) by passing legislation that modifies its structure to address fiscal pressures. The Universal Credit Bill passed the House of Commons in July 2025, marking a concrete legislative step concerning the welfare system under Starmer's premiership. This legislation included provisions to increase the standard rate of Universal Credit, while simultaneously reducing the health-related aspect for specific claimants, leading to public concern.

Timeline

  1. Keir Starmer initially declined to abolish the two-child benefit cap, citing financial reasons for his administration.
  2. Labour withdrew the whip from seven MPs who supported a motion to scrap the two-child benefit cap, which the government resisted on financial grounds.
  3. Starmer ultimately performed a U-turn on the two-child benefit cap, abolishing it in the November fiscal budget.

Actions Taken

  1. Legislation
    The government's Universal Credit Bill passed the House of Commons, implementing changes to the benefit structure.
  2. Legislation
    The government's actions on the Universal Credit Bill involved increasing the standard rate of UC and making reductions to the health-related aspect for certain claimants.

Related Positions

  • Poverty Reduction The two-child benefit cap was resisted due to cost but ultimately abolished to address child poverty.
  • Fiscal Policy The initial resistance to changing the benefit cap and the later passing of the UC Bill were framed as necessary 'tough decisions to stabilise the economy'.

Criticism

Voters/Public

Some members of the British public objected to the attempted benefit reductions included in Labour's Universal Credit Bill in July 2025.

Sources4

* This is not an exhaustive list of sources.