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Sir Keir Starmer’s controversial welfare bill has passed its first hurdle in the Commons despite a sizeable rebellion from his MPs.

The prime minister’s watered-down Universal Credit and Personal Independent Payment Bill, aimed at saving £5.5bn, was backed by a majority of 75 on Tuesday evening.

A total of 49 Labour MPs voted against the bill – the largest rebellion since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.

Politics latest: Chancellor left in ‘impossible situation’ after PM survives welfare rebellion

After multiple concessions made due to threats of a Labour rebellion, many MPs questioned what they were voting for as the bill had been severely stripped down.

They ended up voting for only one part of the plan: a cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

The Institute for Fiscal Studies (IFS) said the bill voted through “is not expected to deliver any savings over the next four years” because the savings from reducing the Universal Credit health element for new claimants will be roughly offset by the cost of increasing the UC standard allowance.

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Just 90 minutes before voting started on Tuesday evening, disabilities minister Stephen Timms announced the last of a series of concessions made as dozens of Labour MPs spoke of their fears for disabled and sick people if the bill was made law.

How did your MP vote on Labour’s welfare bill?

In a major U-turn, he said changes in eligibility for the personal independence payment (PIP), the main disability payment to help pay for extra costs incurred, would not take place until a review he is carrying out into the benefit is published in autumn 2026.

An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.

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Welfare bill blows ‘black hole’ in chancellor’s accounts

A Number 10 source told Sky News’ political editor Beth Rigby: “Change isn’t easy, we’ve always known that, we’re determined to deliver on the mandate the country gave us, to make Britain work for hardworking people.

“We accept the will of the house, and want to take colleagues with us, our destination – a social security system that supports the most vulnerable, and enables people to thrive – remains.”

But the Conservative shadow chancellor Mel Stride called the vote “farcical” and said the government “ended up in this terrible situation” because they “rushed it”.

He warned the markets “will have noticed that when it comes to taking tougher decisions about controlling and spending, this government has been found wanting”.

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‘Absolutely lessons to learn’ after welfare vote

Work and Pensions Secretary Liz Kendall said: “I wish we’d got to this point in a different way. And there are absolutely lessons to learn.

“But I think it’s really important we pass this bill at the second reading, it put some really important reforms to the welfare system – tackling work disincentives, making sure that people with severe conditions would no longer be assessed and alongside our investment in employment support this will help people get back to work, because that’s the brighter future for them.”

She made further concessions on Monday in the hope the rebels’ fears would be allayed, but many were concerned the PIP eligibility was going to be changed at the same time the review was published, meaning its findings would not be taken into account.

Her changes were:

• Current PIP claimants, and any up to November 2026, would have the same eligibility criteria as they do now, instead of the stricter measure proposed

• A consultation into PIP to be “co-produced” with disabled people and published in autumn 2026

• For existing and future Universal Credit (UC) claimants, the combined value of the standard UC allowance and the health top-up will rise “at least in line with inflation” every year for the rest of this parliament

• The UC health top-up, for people with limited ability to work due to a disability or long-term sickness, will get a £300m boost next year – doubling the current amount – then rising to £800m the year after and £1bn in 2028/29.

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Southport stabbing victim reveals how she survived attack – and fears ‘it could happen again’

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Southport stabbing victim reveals how she survived attack - and fears 'it could happen again'

A girl who was stabbed in the Southport attack has told Sky News how she thought she was going to die that day.

Warning: Some readers may find this content distressing

It is exactly a year since Axel Rudakubana killed three girls and attempted to murder eight others at a summer holiday Taylor Swift-themed dance event in the seaside town.

The girl, who cannot be named for legal reasons, was stabbed in the back and the arm after going to the class with her younger sister.

She is now campaigning for children to have mandatory first aid training at school in response to the growth of knife crime.

She said she clearly remembers what happened that day.

Flowers and tributes near the scene of the attack a year ago. Pic: PA
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Flowers and tributes near the scene of the attack a year ago. Pic: PA

“Some of the girls were sat down in a circle making bracelets with the teachers, and a couple of them were getting up to get beads. I was standing between two tables and he came through the doors.

“He stabbed a little girl in front of me and then came for me and stabbed my arm. I turned and then he stabbed my back, even though I didn’t feel it at the time.

“There was a bunch of girls huddled around so I just started pushing them down the stairs, telling them to get out and run.

“I was thinking ‘Where’s my sister?’ and ‘We need to get out’.”

She and many of the other victims ran to the house of a neighbour for shelter. “I just thought that I was going to die,” she said.

Killer ‘looked possessed’

The girl said she can clearly picture Rudakubana that day.

“What I remember most about him is his eyes. They just didn’t look human, they looked possessed. It was kind of like a dream and you’re on a movie set and watching yourself go through it and make these decisions.

“It’s just kind of like adrenaline. People like to think they know what they’d do in that situation but, in reality, you don’t until you’re in it.”

Alice da Silva Aguiar, Elsie Dot Stancombe and Bebe King were murdered in an attack at a Taylor Swift-themed class.
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Alice da Silva Aguiar, Elsie Dot Stancombe and Bebe King were murdered in the attack

Six-year-old Bebe King, Elsie Dot Stancombe, who was seven, and nine-year-old Alice da Silva Aguiar died in the attack. It is something she finds difficult to talk about.

“I don’t think I can express how I feel about it,” the girl said. “A lot of anger and sadness.”

In January, Rudakubana was jailed for life and must serve a minimum of 52 years before he can be considered for release.

The chairman of the public inquiry into the atrocity called the attack “one of the most egregious crimes in our country’s history”.

Carrying knives ‘disgusting’

The girl who survived has now launched a campaign, supported by a clothing range called “Go Anywhere, Be Anything” to raise funds, to improve the ability of schoolchildren to help in the event of knife attacks.

“Everyone that’s going out and carrying knives is getting younger and younger,” she said. “And to think that it’s people my age is like disgusting.

“I just want to try and do the best I can to let people know that it’s not okay to do that and that they need to think about what they’re doing and the risks and how they’re harming themselves and other people.”

Her sister, who was also there that day, helped design “Go Anywhere, Be Anything”.

Read more:
Missed chances to stop Rudakubana

‘Terrorism has changed’, says PM

A three-minute silence will be held in Southport at 3pm to mark one year on from the attack. In an open letter to the community, Sefton Council wrote: “This period is incredibly hard for the families of Alice, Bebe and Elsie and all of those children and adults injured or who suffered lifelong psychological impact of witnessing the attack, and we acknowledge the huge impact on their lives, too.

“We must not forget the local people who rushed to support and to our emergency responders. They all remain always in our thoughts.”

It is a sentiment shared by the survivor.

“You live in fear every day that it could happen again,” she said.

“Physically I’m getting better every day and healing. Obviously, my scars stay as a reminder but everyone from that day is going to have mental scars forever.”

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Revealed: The scale of cheap Chinese imports flown into UK without paying any tariffs

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Revealed: The scale of cheap Chinese imports flown into UK without paying any tariffs

The scale of cheap Chinese e-commerce imports flown into Britain without paying any tariffs has become clearer following a Sky News investigation into this new multi-billion pound phenomenon.

We have uncovered the first official estimate of the value of so-called “de minimis” imports into Britain, ahead of an official inquiry into whether this legal clause – which excludes packages worth less than £135 from paying customs duties – should be allowed to continue.

Companies like Shein and Temu have become big players in British retail, not to mention elsewhere around the world, by manufacturing cheap products in China and then posting them directly to consumers, benefiting from the de minimis rules.

Inside the cargo plane

Clothing manufacturers in the UK claim that de minimis makes it nearly impossible to compete with these Chinese competitors, raising questions about the viability of domestic textile and apparel production.

However, economists argue that the main beneficiaries of the policy to exclude cheap imports from customs are lower-income households, since it allows them to spend less on their shopping. Removing it, they say, would disproportionately affect poorer families.

The government has committed to an inquiry into the rules, which are also being changed in the EU and the US, but up until now there has been no official estimate of its scale.

According to HM Revenue and Customs data released to Sky News following a Freedom of Information request, the total declared trade value of de minimis imports into the UK in the last fiscal year (2024-25) was £5.9bn.

That was a 53% increase on the previous year (£3.9bn), underlining the scale of growth of e-commerce imports into the UK.

While it is hard to gauge how much revenue this means the Treasury has forgone, an illustrative 20% tariff on flows of that order could raise more than £1bn.

De minimis trade is growing

While that sum alone would not fill the fiscal black hole faced by Chancellor Rachel Reeves in the coming budget, it would nonetheless be nearly enough to pay for the government’s recent U-turn on winter fuel allowances.

Sky has also obtained the first television access deep into the supply chain, helping bring those goods into the UK, as it boarded a flight that had just travelled from Chongqing to Bournemouth Airport.

We filmed inside the belly of a plane belonging to European Cargo, one of a number of air cargo firms booming as a result of these trade flows.

Read more:
The rarely examined trade clause about to become a very big deal
UK city’s clothing industry in crisis

The untold story about de minimis is that it hasn’t just had an impact on shopping habits in the UK, or for that matter, the textiles manufacturing sector – it has also changed patterns of distribution.

Struggling regional airports that never saw their passenger numbers recover after the pandemic are now re-establishing themselves as hubs for cargo.

European Cargo is now the single biggest airline at Bournemouth Airport, despite not carrying a single passenger.

Other regional airports like East Midlands Airport and Prestwick in Scotland are seeing rapid growth in flows of trade.

All of which raises the stakes for the government’s inquiry into the de minimis system.

At present, there is no timeline for its decision, but removing the clause would have far-reaching effects across the economy.

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Lionesses parade: The route and key timings as thousands of England fans to descend on central London

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Lionesses parade: The route and key timings as thousands of England fans to descend on central London

The Lionesses will celebrate with thousands of England fans in central London today as the players take part in an open-top bus procession.

The bus will carry the team through central London, allowing supporters to celebrate the team’s defence of their Women’s Euros title alongside the likes of Leah Williamson and Chloe Kelly and catch a glimpse of the silverware.

Here is all you need to know.

Where will the parade go and when?

The team’s open-top bus will travel along The Mall from 12.10pm.

It will end with a staged ceremony at the Queen Victoria Memorial in front of Buckingham Palace, which is expected to start at roughly 12.30pm and end at 1pm, the Football Association (FA) announced.

The Royal Marines Portsmouth band and the Central Band of the Royal Air Force will perform on the stage and highlights from the tournament will be shown on big screens.

England manager Sarina Wiegman will then lead her triumphant team out on stage to lift the trophy.

The event will be hosted by former Lioness and football pundit Alex Scott.

Fans will be able to attend the event for free, but the FA have warned that the capital is going to be “very busy”.

“People should plan their visits carefully, both coming into central London and travelling home,” the association said.

England players celebrate with the trophy after winning the UEFA Women's Euro 2025. Pic: Reuters
Image:
England players celebrate with the trophy after winning the UEFA Women’s Euro 2025. Pic: Reuters

How to watch

You can watch coverage of the entire event live on Sky News from 10am and follow all the action with our live blog.

Fans can also follow coverage of the event on the BBC, ITV and across England’s social media channels.

Celebrations with the deputy PM

The Lionesses landed back in the UK from Basel, Switzerland, on Monday, where celebrations continued with a reception at Downing Street.

Deputy Prime Minister Angela Rayner and sports minister Stephanie Peacock hosted the team ahead of today’s bus parade.

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‘It’s very, very special’

Sir Keir Starmer said: “The Lionesses have once again captured the hearts of the nation.

“Their victory is not only a remarkable sporting achievement, but an inspiration for young people across the country.”

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Chloe Kelly saves England again

An extra bank holiday?

As the team have become the first senior England side to win a major tournament on foreign soil, some have called for an extra bank holiday to mark the occasion.

Liberal Democrats leader Ed Davey was one of those who asked the prime minister if it was “time for that bank holiday”.

He was referring to comments made by Sir Keir in 2023. When, as leader of the opposition, he wrote on X that there “should be a celebratory bank holiday if the Lionesses bring it home”.

But with estimates suggesting an extra bank holiday would cost the economy £2.4bn, it’s understood such a move isn’t being planned by Downing Street.

‘There is no stopping them now’

The impact of the Lionesses second consecutive Euros title is already being felt across the UK.

At Bearsted Football Club in Maidstone, Kent, a mural of Alessia Russo, who levelled Sunday’s final with a goal in the 56th minute, has been unveiled.

Soccer Football - UEFA Women's Euro 2025 - Final - England v Spain - St. Jakob-Park, Basel, Switzerland - July 27, 2025 England's Alessia Ru
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Alessia Russo scoring the levelling goal. Pic: Reuters

The club is where Russo first started playing, and chairman Jamie Houston told Sky News the Lionesses have helped transform the women’s game.

“Five years ago we never had a girl’s football team,” he told Sky correspondent Mollie Malone. “Now we have five separate teams for girls, and boys are accepting of more girls in the game.

“There is no stopping them now.”

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What’s next for the Lionesses?

Read more:
In pictures: The story of the Euros final
Fans celebrate at club where Lioness began journey
Analysis: England showed resolve and relentlessness

Lynda Hale, who played in the England squad in the first ever international women’s match against Scotland in 1972, reiterated that women’s football has changed drastically since she played.

“When I first started playing there was hardly anyone that would watch,” she told Sky News Breakfast.

“To put on the England shirt and think what we started has grown to this magnitude, and it is still going to grow, is absolutely fantastic. I think the sky’s the limit in women’s football.”

Asked what advice she would have for the current England squad after their win, Ms Hale said: “The girls need to make as many memories as they can and take everything in their stride.”

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