Labour MPs Warn Burnham Against ‘Punitive’ UK Welfare Cuts

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Or sign-in if you have an account.Andy Burnham, UK prime minister, center, takes his seat with ministers during his first cabinet meeting inside 10 Downing Street in London, UK, on Tuesday, July 21, 2026. The UK will scrap a 5% tax on energy bills starting from October, Burnham announced, the first of several policies expected to offer households more "breathing space" with the cost of living. Photographer: Chris Ratcliffe/Bloomberg Photo by Chris Ratcliffe /Bloomberg(Bloomberg) — Labour Members of Parliament warned Andy Burnham he will lose the support of his governing party if he approaches welfare reform with a focus on “punitive” cuts, as Britain’s new prime minister prepares to announce plans to alleviate rising youth unemployment. 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He’ll focus on improving educational routes to work placements and vocational training rather than cutting benefit eligibility, people familiar with the plans said. Alongside tackling the one million 16 to 24-year-olds out of work, training or education, Burnham has acknowledged the need to cut the welfare bill – due to surpass £330 billion ($441 billion) in 2025/26. The premier, who took office last week, suggested in a BBC interview aired Monday that he would look to cut spending by making it harder for people to claim benefits, for example by imposing extra conditions on recipients. The UK must be “really serious” about “getting welfare down,” he said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againBurnham is responding to mounting pressure to prove his government’s fiscal credibility by bearing down on rising welfare spending that Labour’s political opponents have repeatedly sought to weaponize. However the new premier risks incurring the anger of the Labour left — whose support he has courted — if he pursues the same approach to welfare reform as his predecessor, Keir Starmer was forced into a damaging U-turn by rebellious Labour lawmakers when he sought to trim £5 billion off welfare spending. On Monday, Labour MPs told Bloomberg the new premier would need to take his party with him in making any changes. Speaking on the condition of anonymity, one MP said Burnham would have to be careful not to repeat the mistakes of approaching welfare reform with a focus on making savings rather than improving the system to make it fairer. They said without proper engagement with MPs the new PM would risk having proposed cuts blocked by his party, just as Starmer did before him.Another Labour MP, Kim Johnson, said she was concerned the appointment of former defense secretary John Healey as Burnham’s new chancellor “signals a return to a ‘warfare, not welfare’ approach”.“If the new leadership believes it can revive the failed politics of welfare cuts instead of asking the wealthiest to pay their fair share, it will be repeating not only Keir Starmer’s mistakes but fourteen years of Tory austerity,” Johnson said. “If the first instinct of a new leadership is to target disabled people and low-income families rather than challenge the wealth and inequality at the top of society, then nothing has been learned.”Johnson added that it would be “absolutely mad to ignore the lessons of the last Parliament” and forget that Labour MPs “made our opposition to welfare cuts crystal clear,” warning Burnham would face the “same resistance” if he opted for the same approach. This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.John McDonnell, a left-winger who served as Labour’s finance spokesman in opposition when Jeremy Corbyn was leader, said any future reform of welfare “must be based upon a strategy of providing positive support to people rather than punitive sanction.” Otherwise, he said, it would not be backed by MPs and the wider party membership. But he added: “I believe Andy Burnham gets that and my hope is that those around him appreciate it too.”New legislation detailing specifics of the government’s planned reforms to welfare will come after the publication of two ongoing government reviews into disability benefits and youth unemployment, expected in the fall.On Tuesday, Burnham will argue that providing more secure routes into employment for school-aged people is key to bringing down the welfare bill when he unveils plans to expand the availability of technical qualifications to those aged 14 and over. Building on a technical education policy rolled out across Greater Manchester when he was mayor there, the premier’s proposals would expand access to vocational education for all year 10 pupils, offering them the chance to combine traditional academic subjects with technical qualifications linked to jobs available in their area by 2028.The announcement does not come with new funding, Burnham’s office said, but ministers will divert funds from existing settlements toward the new technical qualifications. School performance assessments will also be adapted to ensure vocational training is reflected in how highly an institution is rated.Local leaders and employers will work together to offer work experience, networking and training tailored to industries in their areas and the qualifications will cover industries including advanced manufacturing, clean energy, life sciences, construction, healthcare and the creative industries.“I want an education system based on parity between academic and technical which gives all young people a clear path in life,” Burnham said in a statement. “From today, Britain will value the hard hat every bit as much as the graduation cap,” he said, promising a “major shake-up” to fix Britain’s youth unemployment “crisis.”As well as Tuesday’s announcement, Burnham this week is planning interventions in other major policy areas – all of which are likely to require significant public spending – including proposed reforms to adult social care, expected on Wednesday, and announcements on defense and devolution later in the week. (Updates with details of youth education offering starting in 12th paragraph.)Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.