Andy Burnham backs Waspi compensation pledge amid Labour leadership pressure
Labour's leadership contest is intensifying as Andy Burnham signals support for compensation for women affected by changes to the state pension age. The stance revives a potentially multibillion-pound fiscal commitment while adding to pressure on Prime Minister Keir Starmer before the Makerfield by-election next week.
Highlights
- Andy Burnham reiterates support for Waspi compensation, backing payments of £1,000–£2,950 to over 3.5 million women born in the 1950s despite Labour leadership rejecting payouts citing potential £10.5 billion cost.
- Burnham's stance on Waspi risks intensifying internal Labour conflict, as he seeks the Makerfield by-election win and weighs a swift leadership challenge against Keir Starmer.
- Supporters aim to secure backing from at least 150 Labour MPs—well above the 81 required to trigger a formal challenge—raising risk of cabinet resignations and increased political uncertainty after the by-election.
Compensation stance and fiscal exposure
As reported by Financial Times, Burnham says he will continue to support Waspi campaigners, arguing that more than 3.5 million women born in the 1950s deserve compensation over changes to the state pension age that they say were not properly communicated.Speaking on Wednesday at a hustings event hosted by the Manchester Evening News, the Greater Manchester mayor says he feels uncomfortable when politicians back a cause and then enter government without acting on it. He says he stuck by the Hillsborough families and will also stick by the Waspi women because they deserve recompense for unfairness.
A 2024 report by the Parliamentary and Health Service Ombudsman calls for payments of between 1,000 pounds and 2,950 pounds for each affected person. Starmer's government repeatedly rejects compensation, including again this week, amid concern that the total cost could reach 10.5 billion pounds.
Burnham's spokesman says the mayor is committed to looking at the case for compensation but does not provide further detail. The issue has become a point of attack from Starmer allies, who argue that a Burnham premiership could put added strain on the public finances.
Leadership battle raises political risk
Burnham is seeking to win the Makerfield by-election next week and then decide whether to mount a challenge for the Labour leadership. His allies describe the timing as an active internal debate, with some arguing he would need to move quickly after a victory to capitalize on momentum and avoid a prolonged contest.Starmer tells staff this week that he is determined to fight any leadership challenge, and Downing Street says any minister backing Burnham or another contender must resign. That warning increases the prospect of cabinet turmoil if support shifts after the by-election.
Supporters of Burnham discuss assembling backing from at least 150 Labour MPs, well above the 81 needed to trigger a formal challenge, while others believe resignations could rapidly erode Starmer's authority. With uncertainty around the prime minister's future, EU diplomats are also holding talks on whether to proceed with a Brussels summit planned for July 13 on resetting bilateral relations.
Our previous coverage of conflicting UK employment and productivity measures explained how diverging official datasets are making it harder to judge whether the economy is entering a genuine productivity recovery. We noted that this uncertainty matters for Labour’s economic credibility and for policy choices, as clearer productivity gains could affect wage, inflation, and interest-rate expectations.
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