PMQs live: Theresa May stands firm over demands for public sector pay cap to be lifted

Theresa May and Jeremy Corbyn go head-to-head for second time since general election

PMQs: Corbyn looks incredulous as May 'reminds' him of Greece

Prime Minister's Questions returns for the second week since Parliament resumed after the general election.

Clashes between Theresa May and Jeremy Corbyn are likely to focus on the issue of public sector pay, with ministers under mounting pressure to ease austerity and scrap the 1% cap on public sector pay increases.

A number of senior Tory ministers, including Boris Johnson and Michael Gove, have called for the cap to be lifted, but Chancellor Philip Hammond is standing firm - for now at least.

Labour's Shadow Chancellor, John McDonnell, has been granted an urgent question in the Commons on the issue, but that is unlikely to stop Jeremy Corbyn quizzing the Ms May about it too.

MPs are likely to grill the Prime Minister on the ongoing response to the Grenfell Tower disaster, with many of the victims still to be rehoused and Kensington and Chelsea council having been widely condemned for its actions in the days after the blaze.

Today's main politics stories are:

Austerity pay cap declared 'dead in the water after firefighters offer'

David Cameron says people who opposed austerity are 'selfish'

Scotland to end public sector pay cap next year

DUP says no power-sharing deal reached in Northern Ireland

Top BBC journalist snubs Theresa May's attempt to recruit him

Government taskforce to take control of parts of Kensington council

[5 July 2017 12:41 · Kristin Hugo]

Theresa May appears to be losing her voice. She stops mid-answer for a sip of water and then just about manages to get her words out. Labour MPs might point out it wouldn't be the first time she'd been accused of choking on a policy matter. Some commentators say it was the Prime Minister's U-turn on social care that cost her a majority at the general election.

[5 July 2017 12:44 · Kristin Hugo]

John Bercow is on good form today. He accuses the SNP's Stewart McDonald of "gesticulating in an extremely eccentric manner" and suggests the MP "seems a little discombobulated from the world that he inhabits".

"It's a very unhappy state of affairs", he Speaker adds.

[5 July 2017 13:00 · Kristin Hugo]

Labour's Seema Malhotra asks about her constituent Charlie Gard, the terminally ill 10-month-old baby whose life-support machine courts have ruled should be switched off.

She says Charlie should be allowed to travel New York for treatment, if possible, and asks for the Prime Minister's help in making this happen.

May expresses her sympathy for Charlie and his family and says Great Ormond Street Hospital, where he is being treated, will consider "any information or offers thatcome forward". She doesn't say she will intervene in the matter, referencing the judicial process that has been followed.