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this government seems to have given up on its flagship compulsion digital identity policy, Marking another major reversal since the election.
Plans for a mandatory digital identity system aimed at checking rights to work were reportedly thrown into disarray on Tuesday.
the times Ministers are considering alternatives to allow other digital documents to meet the requirements.
The potential shift is the latest in a series of shifts in government.
It previously scaled back major welfare reforms under pressure from backbenchers.
Following extensive lobbying from the agricultural sector, the government also partially reduced estate taxes on farms, underscoring a pattern of policy changes.
Here are some U-turn scenarios:
Bar business fee reduction
It is understood the Treasury is now preparing a support package for the pub industry, marking a major shift from its November 26 budget plans following an outcry over the impact of a sharp rise in business rates.
It is the latest policy introduced under pressure from Labor backbenchers to raise taxes or save money, only to be abandoned or watered down in the face of opposition.
Ministers have set up a £4.3bn fund to help pubs transition to higher rates, but it is understood Chancellor Rachel Reeves will soon announce additional support, including further business rates relief and measures to cut licensing red tape.
farmer inheritance tax
On December 23, after months of protests, the government backed down and announced it would raise the inheritance tax relief threshold for farmers from £1 million to £2.5 million.
The changes to the reforms were initially announced in Labour’s first budget last year after ministers “listened to the concerns of the farming community and businesses”, the Department for Environment, Food and Rural Affairs (Defra) said.
The original Treasury plan to raise money as farmers pass their businesses on from generation to generation sparked protests, with tractors outside parliament and criticism from some Labor MPs in rural seats.
Maximum benefit limit for second child
The government announced in the autumn budget that the two-child cap will be lifted from April.
It comes after seven Labor MPs were suspended for voting against the government’s support for a motion to remove the government.
The cap prevents parents from claiming Universal Credit or tax credits for more than their first two children.
The bill was introduced by the Conservative government in 2017 and was widely criticized by Labor MPs and anti-poverty advocacy groups.
According to the OBR, the move is expected to cost £3 billion by 2029-30.
Day one workers rights
In November, ministers scrapped proposals to shorten the “qualification period” for workers to make unfair dismissal claims from 24 months to the first day of a new job in order to get the legislation through parliament.
The Government now intends to introduce this entitlement after six months of service, while other first-day entitlements to parental leave and sick pay will remain in place, with effect from April 2026.
The concessions came after some businesses raised concerns about potential costs and recruitment challenges.
Prime Minister Sir Keir Starmer faced the wrath of backbench MPs, with some ministers claiming the shift breached Labour’s manifesto.
Labour’s manifesto explicitly pledges to “consult fully with business, workers and civil society on how to put our plans into practice before legislation is passed”.
“This will include banning exploitative zero-hours contracts; ending firing and rehiring; and introducing fundamental rights from day one, including parental leave, sick pay and protection from unfair dismissal,” the report said.
Waspi women
In November, Work and Pensions Secretary Pat McFadden announced that ministers would reconsider the decision not to offer compensation to so-called WASP women.
The group Women Against State Pension Inequality (Waspi) claimed they were affected by the way changes to the state pension age were communicated.
The group said ministers had committed to “doing their best” to reconsider potential compensation within 12 weeks, on February 24, and to pay more than half of Waspi’s legal costs.
Last year, a report by the Parliamentary and Health Services Ombudsman (PHSO) recommended compensation ranging from £1,000 to £2,950 for each person affected.
But in December 2024, the government said that while it accepted the ombudsman’s findings of poor administration and apologized for the delay in sending a letter to women born in the 1950s, a compensation package that could cost taxpayers up to £10.5bn was unjustified.
national insurance
The government’s budget decision to extend the freeze on National Insurance Thresholds by three years has led many to accuse Labor of breaking its tax manifesto promises.
Labour’s 2024 election manifesto says: “Labour will not increase taxes on working people, which is why we will not increase rates of National Insurance, basic, higher or additional income tax or VAT.”
The government said Labour’s manifesto commitment only applied to income tax and national insurance contribution rates, so extending the freezing threshold was not a breach of its commitments.
income tax
In the autumn budget, the government abandoned plans to raise income tax and instead extended the freeze on tax thresholds, an extension that meant millions of people faced being forced to pay higher rates.
Ministers said the changes in the Autumn Statement, including a £26 billion increase in total tax, were “fair and necessary” to help lower the cost of living and improve public services.
welfare cuts
On the first anniversary of Sir Keir’s inauguration, Prime Minister No. 10 scrapped a raft of government welfare reforms in the face of backbench revolt.
Changes to Pip eligibility were removed from the government’s welfare legislation in July 2025, with rebel Labor MPs warning of the impact it would have on disabled claimants.
An ongoing review of Pip, led by social care and disability minister Sir Stephen Timms, is expected to report in the autumn, although the government said it expected an interim update before then.
Beauty gang investigation
In January last year, tech billionaire Elon Musk used his X social media platform to launch a series of attacks on Sir Keir and Security Minister Jess Phillips, sparking a national debate over grooming gangs.
It comes after the government decided to reject a request from Oldham Council for a Whitehall-led inquiry into child sexual abuse in the town.
Sir Keir has resisted a national inquiry for months, with the government insisting it is focused on implementing the outstanding recommendations made by Professor Alexis Jay during the seven-year national inquiry.
But in June 2025, Sir Keir confirmed there would be a statutory inquiry into the grooming gang scandal.
The Home Secretary announced in December that Baroness Anne Longfield would lead the inquiry over three years with a budget of £65m.
Winter fuel costs
In May last year, Starmer announced a partial reversal from a previous decision to strictly limit pensions through means testing, opting instead to offer pensions to all pensioners except those earning more than £35,000 a year.
trans rights
The prime minister appeared to reverse his previous stance on transgender rights following a Supreme Court ruling last April on the legal definition of woman.
In March 2022, before entering Number 10, Sir Keir said “women are female adults and beyond that trans women are women and that’s not just my opinion, it’s actually the law”.
But following the judge’s ruling on April 16, he told ITV West Country: “Women are adult women and the courts have made that clear.”