Around 48 Labour MPs openly defied interim leader Harriet Harman by refusing to abstain on the Government’s welfare bill which was passed with 308 votes in favour and 124 against.
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Ms Harman had sought a compromise in which Labour tabled a “reasoned amendment” for a Commons vote tonight about some aspects of the Bill but not mentioning the heated issue of tax credits.
Rebel ringleader Helen Goodman said the bill was “obnoxious” and “regressive”.
Mr Burnham meanwhile made clear that he could continue to lead the fight against the Government’s plans if he gained the leadership. Of the current Labour leadership candidates only Jeremy Corbyn voted against.
One in five members of the Parliamentary Labour Party voted against the party whip last night. “However, we always knew that there would be a certain number of people who took a different view”, the spokesman said.
His party supported parts of the Bill including capping household benefits: “But this Bill does a few very bad things as well”.
The acting Labour leader signalled support for some elements, including the welfare cap of £20,000 (£23,000 in London) and cuts to child tax credits.
“Collective responsibility is important and it is what I would expect as leader of our party”.
“But I can reassure you that this is only the beginning of a major fight with the Tories”.
“Having pointed out what is wrong with the bill, it seems to me only logical, if her motion doesn’t succeed – which it is unlikely to do – that we vote against the bill in its entirety”, she said.
“If the Government do not make the major changes during committee stage, then, as leader, I will oppose this Bill at third reading”.
SNP employment spokeswoman Hannah Bardell said Labour would suffer for failing to join them in a “progressive coalition to oppose the Tories”.
Opening the Commons debate, Work and Pensions Secretary Iain Duncan Smith accused Labour of failing to learn from its mistakes and said a few MPs were still “addicted to pay debt” with other people’s cash.
The Cabinet minister added the planned reforms would affect 16,000 people living in London and 77,000 from outside the capital.
This includes lowering the benefit cap, bringing down the threshold at which working tax credits are tapered and cutting child tax credits for families with more than two children.
This shows what might be termed the “Miliband effect” on the Labour Party – something that could turn out to be his most damaging legacy.
“The Conservatives claim that they have a long-term economic plan to move the nation back to where we should be”.
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The rebellion underlines the split in the Labour Party in the wake of the general election.
