Andy Burnham, the Labour MP for Makerfield and widely anticipated next Prime Minister, has confirmed that two benefits will be excluded from any welfare reform, despite political pressure to cut costs. The state pension, under the triple lock, will be protected, meaning both the new and basic state pensions are set to rise next year.
Triple lock commitment
Mr Burnham has committed to keeping the triple lock, a policy introduced by the Conservative-Liberal Democrat coalition in 2010 under then-pensions minister Sir Steve Webb. The mechanism ensures the state pension increases by the highest of average earnings, inflation, or 2.5%, preventing its value from being eroded by rising living costs or higher working incomes.
Chancellor Rachel Reeves had previously stated the Labour government would maintain the triple lock until the end of the current Parliament. Mr Burnham has refused to scrap the metric, citing manifesto commitments, despite calls from some quarters to reform welfare spending.
Welfare reform context
The Department for Work and Pensions (DWP) bill has been ballooning, and Mr Burnham recognises the need to address it, but he has ruled out "crude cuts." Former Labour health secretary Alan Milburn, who is leading a government review into worklessness, has been consulted by Mr Burnham. Speaking at an event organised by the Centre for Social Justice think tank, Mr Milburn said: "There’s a cohort, frankly, who’ve been doomscrolling in their bedrooms, probably have got ADHD, been out of the labour market for five or six years. The idea that we’re simply going to get them immediately from the world of the bedroom into the world of the workplace strikes me as fatuous, to be honest."
Graduated employment route
Mr Milburn stressed the need for collaboration with businesses to "find a graduated route into employment for these people." The review aims to address long-term worklessness without imposing harsh cuts on essential benefits like the state pension.
