Sir Keir Starmer has said his welfare reforms strike “the right balance” after making concessions to his own backbench MPs.

The government’s initial plans, aimed at bringing down the welfare bill, would have made it harder for people to claim personal independence payment (Pip), a benefit paid to 3.7 million people with long-term physical or mental health conditions.

However, faced with a growing rebellion from Labour MPs and a likely defeat in the Commons, the government announced the stricter criteria would only apply to new claimants.

“We’ve talked to colleagues who made healthy representations as a result of which we’ve got a package which I think will work,” he said.

Speaking to broadcasters, Sir Keir said: “We need to get it right that’s why we’ve been talking to colleagues and having a constructive discussion.

“We’ve now arrived at a package that delivers on the principles with some adjustments and that’s the right reform and I’m really pleased now that we’re able to take this forward.”

The government originally hoped to save £5bn a year by 2030 with its Universal Credit and Personal Independence Payment Bill, aiming to slow the rise in claimants.

Working-age health-related benefits are estimated to cost an extra £30bn by 2029 without reforms.

But the government faced growing discontent from around 120 of its own MPs over the changes.

While the rebels told the BBC their colleagues are happy with the concessions, some Labour MPs have said they will still vote against the proposals.