GB News presenter Stephen Dixon pressed Labour MP Stephen Kinnock during a heated exchange about the Government's welfare reforms, claiming it will create an "undeniable two-tier benefits system".

The confrontation came after Sir Keir Starmer confirmed his Government would water down proposed cuts to Britain's welfare spending following pressure from potential Labour rebels.

Stephen Dixon said: "It will create a two-tier benefit system, won’t it? I mean, that’s undeniable. If you’re already on Pip, you’ll keep it.

"But if you’re starting Pip, you won’t necessarily qualify. This could deter people on benefits from getting a job, for fear that if they have to go back on benefits, they’ll end up with less money than they had in the first place."

Stephen Dixon pressed Labour MP Stephen Kinnock during a heated exchange about the Government's welfare reforms

Stephen Kinnock MP replied: "Those questions will be at the heart of the review Stephen Timms is leading, to ensure there are no anomalies in the system that the most vulnerable continue to receive the protection they deserve.

"But we also have to look closely at how the current system is trapping people, almost labelling them as incapable of working and writing them off.

"We cannot allow that. We need a system that both protects people and supports them back into the Labour market.

"The Timms review will be doing both: making sure that after November 26 we have a welfare system that is both a safety net and a springboard.

"I’m absolutely confident, Stephen, it will deliver on that, particularly as the review is being co-produced with disabled people."

The Prime Minister completed what critics called an "enormous climbdown" just days after dismissing 120 Labour rebels as being "noises off".

A No10 spokesman said early Friday morning: "We have listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the system."

The concessions include protecting all existing recipients of Universal Credit's health element and guaranteeing a ministerial review of Pip assessments.

Work and Pensions Secretary Liz Kendall confirmed in a letter to Labour MPs that the Government would provide Pip unchanged for all current claimants, with new eligibility requirements only applying to claims made after November 2026.

Kendall concluded in her letter: "At the heart of this review will be co-production with disabled people, the organisations that represent them, and MPs so their views and voices are heard."

The confrontation came after Sir Keir Starmer confirmed his Government would water down proposed cuts to Britain's welfare spending

Leading Labour rebel Dame Meg Hillier described the concessions as "good and workable" following hours of negotiations.

Shadow Chancellor Mel Stride condemned the move as a sign of "weakness", describing it as "the latest in a growing list of screeching U-turns from this weak Labour Government".

"Under pressure from his own MPs, Starmer has made another completely unfunded spending commitment," Stride said.

Shadow Work & Pensions Secretary Helen Whately added: "This is another humiliating U-turn forced upon Keir Starmer. With the sickness benefits bill set to reach £100billion by 2030, the country needs action. But Labour has lurched from a bad plan to a next-to-nothing plan."

The Institute for Fiscal Studies warned the concessions could cost at least £1.5billion for Pip changes alone, with an additional £700million for Universal Credit adjustments by 2029- 2030.