The debate comes as Labour considers how to address rising welfare spending and support more people into employment. Burnham’s approach is expected to focus on reforming the way the system helps people move towards work, rather than reducing payments across the board.
Burnham Signals Support for Welfare Changes While Keeping Pension Commitments
Burnham has confirmed that the state pension will not be targeted as part of his approach to welfare reform. The former Greater Manchester mayor has committed to maintaining the triple lock, meaning the basic and new state pensions are set to rise next year.
The triple lock was introduced in 2010 by the Conservative and Liberal Democrat coalition government under pensions minister Sir Steve Webb. It was designed to protect the value of the state pension by linking increases to earnings growth, inflation or a minimum rise of 2.5 per cent.
According to previous comments from Chancellor Rachel Reeves, Labour planned to keep the triple lock until the end of the current Parliament. Burnham has also avoided supporting calls to remove the policy, saying he intends to follow existing manifesto commitments.
Alan Milburn, the former health secretary leading a government-backed review into worklessness, said Burnham understands the need for welfare reform. Speaking at an event organised by the Centre for Social Justice, Milburn said he had discussed the issue privately with Burnham and believed the incoming administration would be willing to revisit the system.
Milburn said the focus should be on helping people into employment rather than presenting reform as a way to reduce spending alone. He argued that many young people who have been outside the labour market for several years would need a gradual route into work.
Youth Unemployment Drives Calls for a Different Welfare Approach
Milburn’s review has highlighted the scale of economic inactivity among young people in the UK. According to his interim diagnostic report published in May, more than one million young people are estimated to be not in employment, education or training.
The report stated that youth unemployment costs the UK around £125bn a year, including £3.2bn spent on health and disability benefits for young people in this group. It also found that the DWP spends significantly more on youth welfare than on helping young people enter employment.
Milburn said the current system does not provide enough support for those seeking a route back into work. He suggested that cooperation between government and businesses would be needed to create more gradual pathways into employment.
The issue has already caused divisions within Labour. More than 100 Labour MPs previously opposed plans under Sir Keir Starmer’s leadership to reduce spending on Personal Independence Payment (PIP) by changing eligibility rules. According to The Independent, the proposals were later withdrawn, with only changes to the health element of universal credit continuing.
Disability campaigners have argued that welfare reform should not become a way of reducing support. James Taylor, director of strategy at Scope, said the system needed reform but warned that disabled people should not bear the cost of wider financial decisions. Burnham’s expected leadership period is likely to bring further discussion about how welfare can be reshaped while maintaining support for people who rely on the system.
