Andy Burnham supports overhaul of welfare system amid youth job crisis
Andy Burnham is “absolutely up” for overhauling the welfare system and knows it is “absolutely necessary,” according to Alan Milburn, the author of a landmark report on the youth job crisis in Britain, reports BritPanorama.
Milburn, a former health secretary, noted in his government-backed report that youth unemployment costs the UK more than £125 billion annually and urged ministers to contemplate reforms to the welfare system.
At a recent event hosted by the Centre for Social Justice (CSJ) think tank, Milburn disclosed that he has engaged in private discussions with Burnham, indicating that the incoming prime minister will have the “appetite” to revisit welfare reforms during this parliament.
He stated: “I’m not going to go into what we’ve discussed privately, but everything I’ve seen from Andy publicly suggests that he knows that welfare reform is absolutely necessary.”
Milburn expressed optimism, saying, “Honestly, my sense is that the appetite within the parliamentary Labour Party and the new administration will be absolutely up for this.”
Any attempt by Burnham to overhaul the welfare system will test the resolve of Labour backbenchers, who previously rebelled against Sir Keir Starmer’s proposed £5 billion cuts last year.
However, the newly elected Makerfield MP may seek a reform-focused approach rather than simply implementing cuts, which could help mitigate dissent from party members.
Last year, under Starmer’s leadership, the government abandoned its controversial plan to reduce spending on the Personal Independence Payment (PIP), which would have cut £4.8 billion from the welfare budget. Instead, only minor adjustments to the health-related component of universal credit were implemented, resulting in a reduced saving of £2.3 billion.
More than 100 Labour MPs opposed the cuts, leading to the government’s announcement that disability minister Sir Stephen Timms would initiate a review of the benefit, with results expected in the autumn.
Reflecting on this issue, Milburn stated that the government “got it wrong and got it framed in the wrong way” by portraying the policy as a “pure cost mechanism.”
He asserted, “I think the right way to frame it is what we try to do in this review, which is to say: look, you’ve got a huge welfare problem now… the best and most sustainable way of doing it is to ensure that those young people get the opportunity to work so that they can be at work, they can pay their taxes and they become less dependent on benefits.”
Milburn’s comments come after several Labour welfare rebels indicated that Burnham must eliminate the prospect of welfare cuts to address the £4.7 billion deficit resulting from Starmer’s defence spending plans.
Rachael Maskell, a notable figure in last year’s backbench rebellion, noted: “Ensuring financial security for disabled people and people who are on poverty pay must remain the principle of our social security system. While it is right that Labour does everything possible to help people into work to cut the demands on the DWP, cuts will simply displace the expenditure.”
Milburn presented his interim diagnostic report in May, revealing that over 1 million young people in the UK are currently estimated to be not in employment, education, or training (Neet). This figure could escalate to 1.25 million by decade’s end if preventive measures are not adopted.
The report highlights that the youth unemployment crisis costs the country approximately £125 billion yearly, which includes £3.2 billion spent on health and disability benefits for Neet claimants.
Additionally, it indicates that the Department for Work and Pensions (DWP) allocates £25 to youth welfare for every £1 it spends on facilitating employment opportunities for young people.
Milburn stressed the need for effective welfare reform: “So precisely the thing that they want, which is support into work and the opportunity to do so, is exactly what the state isn’t providing… so that’s how you do welfare [reform],” he commented at the CSJ event.
While welfare rights and disability campaigners mostly support Milburn’s reform agenda, they argue that his proposals should not solely focus on cost-cutting measures.
James Taylor, director of strategy at disability equality charity Scope, remarked: “A new PM will have many different options and ways of investing in defence. We don’t need to – and should not – balance the books on the backs of disabled people. The benefits system needs reform, but reform cannot become code for cutting support. Life costs more if you are disabled, and everyday living costs remain stubbornly high.”
