Politics Home | Andy Burnham Says He Wants To Use Devolution To Bring Down Welfare Spending

3 min read43 min

Speaking to PoliticsHome in Makerfield on Friday, where he is standing as Labour’s by-election candidate later this month, the Greater Manchester mayor said: “We’ve all got to be concerned with getting the welfare bill down.

“I don’t think there’s any debate about that, to be honest, it’s how you do it.”

He argued that the best way to do so was through a more localised approach, rather than cuts made in Westminster.

“It’s an overhaul that the Whitehall system can’t really make,” he said. “It’s an argument actually for dealing with this in a much more devolved way than it is currently done.”

Burnham – who confirmed in a BBC debate on Thursday that he wants to replace Prime Minister Keir Starmer in No 10 if his bid to return to the House of Commons is successful – told PoliticsHome that local and regional authorities should be empowered to give out-of-work people the support they need for mental health problems.

“We don’t have a system that is set up to look and really get to the heart of why somebody isn’t able to sustain themselves in the labour market, and that’s been the journey that I’ve been on as mayor of Greater Manchester.

“But if you do give people what they’re looking for, I think you can support more people into work,” he said.

Welfare has emerged as a thorny issue for the Labour government since being elected in July 2024.

Starmer tried to introduce benefits reforms last year but was forced to abandon the plans by a major Labour backbench rebellion.

Private messages published by the government earlier this week showed Work and Pensions Secretary complaining to former US ambassador Peter Mandelson that “every meeting” he had with Labour MPs was a discussion about “who can we tax in order to pay benefits to others”.

A new report authored by former health secretary Alan Milburn found that the total annual cost to the taxpayer of just under one million young people not being in employment, education or training (NEET) is £125bn per year.

Speaking to PoliticsHome, Burnham described the report as a “very significant intervention”.

“I’ve contributed to it, and I think Alan is interested in what we’ve done because we’ve taken a different approach to supporting people into work.

“And this is the thing: The DWP (Department for Work and Pensions) system, I don’t think does do that, because it’s a very narrow approach in this day and age.”

He continued: “The reasons why people, particularly young people, may not be in work would be related to mental health or the housing situation or the debt they may be facing, a whole range of other things that are going on.”

Burnham criticised previous governments for encouraging more than 50 per cent of people to go to university.

“The obsession with the university route began with the Blair government, but then was very much continued by Gove in his reforms, [and] left 50 per cent or more of young people, particularly in an area like this [thinking], well, what about me?

In an interview with The House magazine in Makerfield, Burnham said he is “not going to hold back” on early reform to the House of Lords if he becomes prime minister.

“I can’t justify, personally, 800-plus members of the House of Lords. I don’t think – with great respect to many people in it, because I have true great respect, because there’s some incredible people in there – what the country spends on the House of Lords is actually justified by what the output is,” he said.