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Cabinet ministers have been asking Labour MPs to take their name off a rebel amendment to the government’s controversial welfare bill, Sky News can reveal.

In an attempt to quell the mounting rebellion of more than 100 MPs across all wings of the party, cabinet ministers were instructed to ring around the signatories of the amendment in a bid to get them to back the welfare cuts ahead of a planned vote next Tuesday.

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Two Labour MPs said they had been asked if they would take their names off the amendment, while one was asked if they would be prepared to abstain on the bill next week.

One Labour MP said: “‘The more they tell people to take their names off, the more names are added on.”

Others were also told their actions could provoke a fresh leadership challenge and that they were aligning themselves with Nigel Farage in a bid to get them to back down.

“I had a conversation with a senior cabinet member yesterday who basically said if the government is defeated next week it will trigger a leadership contest,” a Labour MP said.

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“I can see how that might be the case but I would argue if that’s where we end up it’s because the government have allowed that to happen. The ball is very much in their court.

“By and large the rebels do not want this to be about leadership. We just want to government to listen.”

Another added that while they had not received a call from a cabinet minister, they knew “some colleagues are being told there will be a leadership challenge or a general election which is utter nonsense”, adding: “Everything is all over the place.”

The amendment, if passed, would effectively kill the government’s welfare reforms by failing to give it a second reading in the Commons.

What are the main changes in the welfare bill?

The most controversial elements of the government’s welfare bill are changes to PIP and Universal Credit.

PIP is money for people who have extra care needs or mobility needs as a result of a disability.

People who claim it – some of whom are in work – are awarded points depending on their ability to do certain activities, such as washing and preparing food, and this influences how much they will receive.

Under the plans, from November 2026, people will need to score a minimum of four points in at least one activity to qualify for the daily living element of PIP – instead of fewer points across a broader range of tasks the person needs help with.

The changes do not affect the mobility component of PIP.

And from April next year, the health element of Universal Credit will be frozen in cash terms for existing claimants at £97 per week until 2029/2030.

For new claimants, the health element of Universal Credit will be reduced to £50 per week.

However, ministers point to the fact that the Universal Credit standard allowance will increase from £92 per week in 2025-26 to £106 per week by 2029-30.

Overall, 3.2 million families are expected to lose an average of £1,720 by the end of 2030 due to the changes.

However, the government has stressed that these figures do not take into account the £1bn that is being put towards helping the long-term sick and disabled back into work.

It calls for a delay to the £5bn package to assess the impact of cuts to personal independence payments (PIP) and expresses concerns about the government’s own figures showing 250,000 people could be pushed into poverty – including 50,000 children.

The fact the amendment was tabled by Dame Meg Hillier, chair of the Treasury select committee, with the support of 12 other select committee chairs, has alarmed Downing Street – as has the sheer scale of the rebellion.

At least 123 Labour MPs have signed the public amendment, but Sky News understands more names are likely to appear in the coming days.

While Sir Keir Starmer and his deputy, Angela Rayner, have insisted the vote will go ahead next Tuesday, the decision to instruct cabinet ministers to call around colleagues suggests the government is concerned about potentially losing the vote.

‘The government is not listening’

A Labour MP who signed the amendment said most rebels wanted the government to pause the proposals pending a proper consultation.

They said the fact that the text of the bill had been published before the consultation had closed was proof the government was “not listening”.

Another MP said they had raised concerns that if constituents are moved from PIP to universal credit they could potentially exceed the benefits cap, which could disproportionally hit those living in cities where the cost of living is higher.

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“I can’t look at my constituents and say I’m confident this won’t negatively affect them,” they said.

The MP also criticised the government’s approach to keeping MPs on side, saying it had failed to make the case for reform consistently.

“The engagement stopped after the initial flurry of bad press. Now there is a small amount of activity before the vote. Ministers need to be out there; the PM needs to be out there.”

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Starmer faces welfare rebellion

Despite the growing rebellion, the prime minister has indicated he is not willing to offer concessions on the government’s welfare plans.

Asked by reporters at the NATO summit in the Netherlands if he was willing to make changes to the bill, Sir Keir said: “We have got to make the reforms to our system. It isn’t working as it is.

“It doesn’t work as it stands for people who desperately need help to get into work or for people who need protection. It is broken.

“We were elected in to change that which is broken, and that’s what we will do, and that’s why we will press ahead with reforms.”

Downing Street has been contacted for comment.

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Labour MPs already angry over claim Mandelson’s appointment was ‘worth the risk’

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Labour MPs already angry over claim Mandelson's appointment was 'worth the risk'

If you want to know why so many Labour MPs are seething over the government’s response to the Mandelson saga, look no further than my mobile phone at 9.12am this Sunday.

At the top of the screen is a news notification about an interview with the family of a victim of the notorious paedophile Jeffrey Epstein, saying his close friend Peter Mandelson should “never have been made” US ambassador.

Directly below that, a Sky News notification on the business secretary’s interview, explaining that the appointment of Lord Mandelson to the job was judged to be “worth the risk” at the time.

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Peter Kyle went on to praise Lord Mandelson’s “outstanding” and “singular” talents and the benefits that he could bring to the US-UK relationship.

While perhaps surprisingly candid in nature about the decision-making process that goes on in government, this interview is unlikely to calm concerns within Labour.

Quite the opposite.

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For many in the party, this is a wholly different debate to a simple cost-benefit calculation of potential political harm.

As one long-time party figure put it to my colleague Sam Coates: “I don’t care about Number Ten or what this means for Keir or any of that as much as I care that this culture of turning a blind eye to horrendous behaviour is endemic at the top of society and Peter Kyle has literally just come out and said it out loud.

“He was too talented and the special relationship too fraught for his misdeeds to matter enough. It’s just disgusting.”

There are two problems for Downing Street here.

The first is that you now have a government which – after being elected on the promise to restore high standards – appears to be admitting that previous indiscretions can be overlooked if the cause is important enough.

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Government deeming Mandelson to be ‘worth the risk’ is unlikely to calm Labour MPs

Package that up with other scandals that have resulted in departures – Louise Haigh, Tulip Siddiq, Angela Rayner – and you start to get a stink that becomes hard to shift.

The second is that it once again demonstrates an apparent lack of ability in government to see around corners and deal with political and policy crises, before they start knocking lumps out of the Prime Minister.

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Sir Keir Starmer is facing questions over the appointment and subsequent sacking of Lord Mandelson as the UK’s ambassador to the US.

Remember, for many the cardinal sin here was not necessarily the original appointment of Mandelson (while eyebrows were raised at the time, there was nowhere near the scale of outrage we’ve had in the last week with many career diplomats even agreeing the with logic of the choice) but the fact that Sir Keir Starmer walked into PMQs and gave the ambassador his full-throated backing when it was becoming clear to many around Westminster that he simply wouldn’t be able to stay in post.

The explanation from Downing Street is essentially that a process was playing out, and you shouldn’t sack an ambassador based on a media enquiry alone.

But good process doesn’t always align with good politics.

Something this barrister-turned-politician may now be finding out the hard way.

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Man admits arson after major fire at MP Sharon Hodgson’s constituency office

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Man admits arson after major fire at MP Sharon Hodgson's constituency office

A man has admitted arson after a major fire at an MP’s constituency office.

Joshua Oliver, 28, pleaded guilty to starting the fire which destroyed the office of Labour MP Sharon Hodgson, at Vermont House in Washington, Tyne and Wear.

The fire also wrecked a small charity for people with very rare genetic diseases and an NHS mental health service for veterans.

The guilty plea was entered at Newcastle Magistrates’ Court on the basis that it was reckless rather than intentional.

Hodgson, who has been an MP since 2005, winning her seat again in 2019. Pic: Reuters
Image:
Hodgson, who has been an MP since 2005, winning her seat again in 2019. Pic: Reuters

The Crown did not accept that basis of plea.

Oliver, of no fixed address, had been living in a tent nearby, the court heard.

Northumbria Police previously said it was “alerted to a fire at a premises on Woodland Terrace in the Washington area” shortly after 12.20am on Thursday.

“Emergency services attended and no one is reported to have been injured in the incident,” it added.

Drone footage from the scene showed extensive damage to the building.

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A spokesperson for the Crown Prosecution Service said: “Our prosecutors have worked to establish that there is sufficient evidence to bring the case to trial and that it is in the public interest to pursue criminal proceedings.

“We have worked closely with Northumbria Police as they carried out their investigation.”

Oliver was remanded in custody and will appear at Newcastle Crown Court on Tuesday, 14 October.

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Why sacking Lucy Powell might come back to haunt Starmer

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Why sacking Lucy Powell might come back to haunt Starmer

Sir Keir Starmer may end up regretting sacking Lucy Powell.

The former Commons leader, who has been described as “scrappy” and a “formidable” organiser with connections right across the Labour Party, will take on Education Secretary Bridget Phillipson in the race to replace Angela Rayner as deputy leader following her dramatic resignation from government.

Ms Powell’s presence on the ballot paper, confirmed on Thursday night after she won the backing of 117 MPs, turns the internal battle into an effective referendum on the prime minister’s leadership, at a time when the mood in the party likely reflects the wider mood in the country.

The Manchester Central MP, who previously served as an aide to Ed Miliband, was part of a contingent of North West MPs who were sacked in last week’s reshuffle.

Sky News understands that Ms Powell asked the prime minister three times why she was being removed from her post – but did not receive an answer.

She has emerged as the backbenchers’ candidate, in contrast to Ms Phillipson, the loyalist education secretary, who is seen as Number 10’s choice. It is a label that may prove to harm rather than help the cabinet minister’s chances.

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What Labour needs in a deputy PM

After her place on the ballot was confirmed, Ms Powell called for a “change of culture” in Downing Street.

“We’ve got a bit of a groupthink happening at the top, that culture of not being receptive to interrogation, not being receptive to differing views,” she told The Guardian newspaper.

Allies of Ms Powell say it is her ability to engage with MPs and network that has landed her on the ballot paper, and she is also a beneficiary of the prime minister’s poor handling of his own party, evidenced by the way he handled the reshuffle – not to mention other mishaps over the past year regarding winter fuel payments and welfare.

‘Inept people management’

Many of the ministers who were sacked expected to receive a phone call from Sir Keir himself, but Sky News understands they instead received the news through either Darren Jones, his chief secretary, or Jonathan Reynolds, the former business secretary who was himself demoted to chief whip.

One minister who spoke to Sky News said it was not Sir Keir who told them they were being sacked.

“It’s inept people management that is going to come back to bite him,” they said.

“There’s a lot of people who see this deputy leadership contest as an opportunity to reinforce that point.

“People need a way to air their concerns, and if the debate is shut down because there isn’t a contest, it will just explode later on at a much higher volume.”

Labour insiders say Sir Keir’s lack of personal touch has fuelled “resentment and revenge” in the PLP that will directly benefit Ms Powell – with one saying Sir Keir had turned her into a “martyr”.

They draw parallels with the government’s mishandling of internal splits over Gaza which resulted in a large rebellion while in opposition, and more recently the uproar over welfare cuts that was only minimised when Ms Rayner was brought in to bridge the gap with MPs.

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Why the Labour deputy leader race is important

Powell a ‘shop steward’ of the PLP

Karl Turner, the Labour MP for Hull East, told Sky News he believed that sacking Ms Powell actually strengthened her chances in the race.

“Lucy Powell will, I am sure, prove to be the most popular candidate amongst ordinary members once the contest is opened up because members will see her as not being the choice of Downing Street,” he said.

“I have no doubt that Keir Starmer saved the Labour Party from itself not too many years ago, but I am worried that we are in danger of losing the entire Labour movement unless we change stance, fast.”

He added: “I’m supporting Lucy Powell because I know she will be the shop steward for the PLP. Lucy is fearless and will speak truth to power without fear or favour. We must act fast as a political party and absolutely must not allow this deputy leadership contest to become a referendum on the prime minister’s premiership.”

Another backbencher summed up the contest as a chance to give Sir Keir “a bloody nose”, while a separate source said removing Ms Powell was “utterly egregious”.

“It’s given Andy Burnham the biggest energy boost.”

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Andy Burnham on deputy leader race

As well as mobilising the PLP, Ms Powell’s sacking has fuelled speculation of a comeback for Andy Burnham, the mayor of Greater Manchester who is her close friend and has long been known to harbour leadership ambitions.

There is speculation that should a Manchester MP stand down, Mr Burnham may be inclined to run in the ensuing by-election.

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What do unions want from Labour’s new deputy?

Mr Burnham has not given any indication that he is planning to run again for parliament but has also not ruled out a return to Westminster in the future.

Such a scenario would present the ultimate crisis for Number 10 – long suspecting the openly critical mayor has designs on the prime minister’s job.

Number 10 would be forced to choose between allowing Mr Burnham to run in the by-election and thus make it easier for him to launch a potential leadership challenge, and blocking him from the ballot paper and risk gifting the seat to Reform, while causing an outcry among MPs.

Some have been at pains to point out that this deputy leadership contest is not about the heart and the soul of the Labour Party – and Ms Powell has stressed her time serving in government – it is about Sir Keir’s leadership.

As one union source put it: “If Lucy can run this as a referendum on the direction of the government, she’d win.”

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