UK prime minister outlines pension, care and electoral reforms
In his first Labour conference speech as prime minister, Andy Burnham announced changes to the state pension’s earnings link, a proposed national care service and a commission on electoral reform. He also promised legislation on leaseholds, changes to water ownership rules and measures affecting social housing.
UK Prime Minister Andy Burnham used his first Labour conference speech as party leader to outline a broad package covering pensions, social care, elections, housing and Britain’s relationship with the European Union. He announced that from 2030 the state pension would rise by whichever was higher of inflation or 2.5 per cent, rather than also being linked to earnings. A safeguard would guarantee that pensions reached at least 30 per cent of average earnings in years when earnings exceeded the other measures.
Officials said the change to the earnings element could save about £15bn a year by 2040. Burnham also repeated his commitment to a national care service that would be free at the point of use and funded partly through the pension change. On elections, he argued that first-past-the-post had contributed to governments being formed without broad electoral support.
He announced a national commission to examine voting options, with recommendations to be included in Labour’s next manifesto. Officials said any system would preserve the link between MPs and constituencies and would not be purely proportional. Burnham said Brexit had done more harm than good, citing weaker economic growth and a lack of the promised control over immigration.
He said an upcoming summit with the EU would be used to set out options for Britain’s long-term relationship with European partners and seek consensus. He promised a leasehold bill before Christmas and new powers allowing councils to compel owners of poor-quality rented homes to improve them, with compulsory purchase easier if they failed to do so. He also said a water bill would repeal Margaret Thatcher’s ban on public ownership of water companies.
Ministers were considering changes to insolvency law, but those were not included in the speech. Burnham further proposed removing the right to buy from newly built social homes while retaining it for existing properties, and repeated a plan for 20 per cent equity loans for first-time buyers.
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