Sir Keir Starmer has said fixing the UK’s welfare system is a “moral imperative” after the government’s U-turn.

The prime minister faced a significant rebellion over plans to cut sickness and disability benefits as part of a package he said would shave £5bn off the welfare bill and get more people into work.

The government has since offered concessions ahead of a vote in the Commons on Tuesday, including exempting existing Personal Independence Payment claimants (PIP) from the stricter new criteria, while the universal credit health top-up will only be cut and frozen for new applications.

Speaking at Welsh Labour’s annual conference in Llandudno, North Wales, on Saturday, Sir Keir said: “Everyone agrees that our welfare system is broken, failing people every day.

“Fixing it is a moral imperative, but we need to do it in a Labour way, conference, and we will.”

Sir Keir also warned of a “backroom stitch up” between the Conservatives, Reform UK and Plaid Cymru ahead of next year’s Senedd elections.

He said such a deal would mark a “return to the chaos and division of the last decade”.

But opposition parties have hit back at the prime minister’s “imaginary coalitions”, with Plaid Cymru accusing Labour of “scraping the barrel”.

Reform UK said the NHS “isn’t safe in Labour’s hands” and people are “left waiting in pain” while ministers “make excuses”.

Voters in Wales will head to the polls next May and recent polls suggest Labour are in third place, behind Reform and Plaid.

Labour have been the largest party at every Senedd election since devolution began in 1999.

Conservative Party leader Kemi Badenoch has not ruled out making deals with Plaid Cymru or Reform at the Senedd election.

Read more:
This has been the PM’s most damaging U-turn yet
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At the conference, the prime minister was joined on stage by Wales Secretary Jo Stevens, First Minister Eluned Morgan and deputy leader of Welsh Labour Carolyn Harries.

He described Baroness Morgan as a “fierce champion for Wales” and “the best person to lead Wales into the future”.

Sir Keir said the £80m transition board to support Port Talbot steelworkers after the closure of the plant’s blast furnaces was a result of “two Labour governments working together for the people of Wales”.

He described Nigel Farage as a “wolf in Wall Street clothing” who has “no idea what he’s talking about” on the issue.

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The PM said the Reform UK leader “isn’t interested in Wales” and has no viable plan for the blast furnaces at Port Talbot.

“When you ask him about Clacton, he thinks he’s running in the 2.10 at Ascot,” Sir Keir joked.

“He’s a wolf in Wall Street clothing.”

Mr Farage has said his party wants to restart the blast furnaces at Port Talbot.

Around 20 tractors were parked on the promenade in Llandudno ahead of the speech, as farmers gathered outside the conference to stage a protest.

It was later followed by a pro-Palestine demonstration of around 200 people, with around a dozen counter-protestors also in attendance.