Alan Milburn Says Andy Burnham Supports Welfare Reform Despite Labour Blocking Earlier Cuts

Alan Milburn, author of a government-backed report on youth unemployment, said Monday that Andy Burnham supports overhauling the welfare system and knows such reform is necessary. The Independent reported that Milburn, who presented an interim diagnostic report in May, made the comments at an event hosted by the Centre for Social Justice think tank.

Milburn revealed he held private talks with Burnham and assessed that the incoming prime minister and the parliamentary Labour Party have the appetite for welfare reform during this parliament.

He told the event that everything he has seen from Burnham publicly suggests awareness that reform is absolutely necessary, adding that his sense is the appetite within the party and new administration will be absolutely up for this. The Independent reported that Burnham is likely to become prime minister by July 20.

Milburn's report stated that youth unemployment is costing Britain more than £125bn a year, with more than 1 million young people currently not in employment, education or training.

That number could rise to 1.25 million by the end of the decade without action, the report said. The Department for Work and Pensions spends £25 on youth welfare for every £1 it spends on helping young people into work, according to the report. It also noted £3.2bn spent on health and disability benefits for Neet claimants.

Milburn urged ministers to consider changes to the welfare system and said the government got it wrong last year by framing policy as a pure cost mechanism. The Independent reported that Labour backbenchers rebelled last year and prevented Sir Keir Starmer making £5bn of cuts. The government U-turned on plans to cut £4.8bn from the Personal Independence Payment by restricting eligibility.