The Prime Minister is facing a crisis as Labour MPs stage a rebellion against Government plans to axe benefits for thousands of Brits. Keir Starmer’s allies have said that such actions could end in a leadership contest.

The new welfare Bill will be in the Commons next Tuesday, July 1. If it is passed, around 800,000 people would lose their disability benefits. Analysis from Whitehall found that this would push 250,000 people into poverty, including 50,000 children. As a result, 125 Labour MPs have called on the Government to receive analysis from the Office for Budget Responsibility about the impact of these cuts. It is believed that 45 more Labour MPs will oppose the Bill. This total (170 MPs) would mean the Bill wouldn’t have enough votes to pass through Parliament.

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A Labour MP has claimed that the Prime Minister’s team has been urging MPs to toe the line, saying that discord could “bring the Government down” and “result in a General Election being called”.

Another was told that dissent “would cause a fresh leadership contest” and that “this could be the start of the end for Keir”.

But not all MPs were moved by such pleas from Downing Street. “I would be happy to see a leadership contest, I think perhaps it’s time for change,” a Labour MP told the Financial Times.

Starmer doesn’t seem overly concerned about the vote, telling Sky News: “It’s not a confidence vote. It’s a vote about reforming our welfare system.”

“It isn’t working. It doesn’t help people into work. Quite the contrary, it actually makes it harder for people to go into work. I think most colleagues do accept the case for reform, we’ve got to get on and make that reform.”

The Leader of the Opposition, Kemi Badenoch, has offered the Prime Minister a way to ensure the Bill passes – three conditions being added to the Bill that will result in support from Tory MPs.

The Leader of the Opposition said: “I’m just making it very clear to Keir Starmer that if he will make commitments at the despatch box to meet our conditions which are to reduce the welfare budget, to get people into work and not to have tax rises, then we can support his Bill.

“The Bill is a bit of a mess. It needs some work. It looks like it’s been rushed for Rachel [Reeves] to fix other problems that they’ve got. But our welfare budget is far too high, and we really need to bring it down.”