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The State of It

The State of It

Andy Burnham's welfare plan: spend first, cut later

Oct 20, 2026 · 28m

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Andy Burnham's welfare reforms are likely to start with more, not less, spending. In his review into Neets, young people not in education, employment or training, Alan Milburn will propose restricting access to universal credit for 16 to 24-year-olds, and spending money instead on employment support. The prime minister will tell MPs the government needs to spend first, cut later to bring about meaningful welfare reform. That may please Labour MPs but will the bond markets keep the faith? Meanwhile, the home secretary, Shabana Mahmood, is facing opposition within Labour over plans to double the wait for indefinite leave to remain from five to 10 years. Will Burnham back her reforms, or carve…