Chancellor Rachel Reeves in Tears During PMQs Over Welfare Bill Controversy

Rachel Reeves, UK Chancellor of the Exchequer, was seen visibly emotional with tears during Prime Minister’s Questions (PMQs) on Wednesday, sparking fresh speculation about her future amid turmoil over recent welfare reforms.

The Chancellor appeared upset while sitting next to Labour leader Sir Keir Starmer as he faced intense scrutiny over the chaos surrounding Tuesday night’s benefits cuts vote. Downing Street quickly moved to reassure the public, insisting that Ms Reeves “is going nowhere” and has Sir Keir’s “full backing.”

A spokesperson for Ms Reeves said the tears were linked to a “personal matter” and not related to political pressures. Sources also indicated she was briefly reprimanded by Speaker Sir Lindsay Hoyle for lengthy answers during Treasury questioning on Tuesday, and that tensions flared between Ms Reeves and the Prime Minister before PMQs claims both No.10 and No.11 Downing Street denied.

The political uncertainty rattled financial markets: the British pound dropped 1.14% against the US dollar, hitting 1.358, and fell 0.8% versus the euro to its lowest level since April.

Sir Keir appeared before MPs after being forced to water down key parts of his welfare reform bill following rebellion from Labour backbenchers. The decision left a £5 billion shortfall in the Chancellor’s budget, raising fears of tax increases later this year.

Conservative Party leader Kemi Badenoch did not hold back, calling Ms Reeves “absolutely miserable” and challenging the Prime Minister to confirm whether she would remain in her role until the next general election. Sir Keir declined to answer directly, instead suggesting Mrs Badenoch “certainly won’t” hold her position.

Labour minister Ellie Reeves was seen supporting her sister as she left the Commons chamber.

Downing Street maintained its firm support for Ms Reeves. A spokesperson said, “The Chancellor is going nowhere. She has the Prime Minister’s full backing.” They stressed that repeated affirmations from Sir Keir make further public reassurances unnecessary amid speculation.

The welfare bill’s key defeat concerned personal independence payments (PIP), which Labour had planned to restrict. After opposition from within his own party, Sir Keir scrapped those plans, delaying changes until after a review set for autumn 2026. This move challenges Ms Reeves’ fiscal targets, with the Institute for Fiscal Studies warning there will be no “net savings” by 2029/30.

Ms Badenoch labelled the episode a “humiliating U-turn,” accusing the Prime Minister of weakness and loss of control over his party.

Sir Keir defended the reforms as ultimately beneficial, stating they would improve outcomes for individuals, taxpayers, and the economy.

During PMQs, Ms Badenoch pressed the Prime Minister on expected savings from the welfare bill, highlighting the government’s struggles. Sir Keir responded that the bill protects those with severe disabilities by ending mandatory reassessments, rebalances Universal Credit, and lays the groundwork for PIP reform.

He concluded, “If you can work, you should work. If you need help, the state should provide it. And if you can’t work, you must be supported and protected. The system we’re creating will be better for everyone.”