Burnham proposes pension rule change from 2030 to support care service

Andy Burnham has proposed changing the state pension triple lock from 2030, saying savings from the reform would help pay for a new national care service in England. In his first Labour Party conference speech as prime minister, he also set out plans involving public ownership, housing, closer ties with the European Union and a review of the UK’s electoral system. Some proposals are intended for a future Labour manifesto rather than immediate implementation.

Under Burnham’s proposal, the state pension would rise annually by inflation or at least 2.5%, whichever provides the higher increase, but would lose its automatic link to average earnings. He said the arrangement in place now would continue until 2030. The triple lock, introduced by the coalition government in 2010, currently raises pensions each April by whichever is greatest: inflation, earnings growth or 2.5%.

Government officials estimate that the revised formula might reduce annual spending by £15bn by 2040. Jonathan Cribb, deputy director of the Institute for Fiscal Studies, said the financial gains would build gradually: they are expected to be limited in the early years but considerably larger over time. He warned that this would not generate enough money to pay for universal social care during the next Parliament.

The proposal followed days of questions about how the government would finance Burnham’s plan for free-at-the-point-of-use social care in England. He said the service would be fully funded without borrowing and is being developed for presentation to voters in 2029. He described it as a landmark reform, arguing that older people on only a state pension or a little more can currently have to pay care charges from limited incomes. He also referred to his family’s experience, including his grandmother Kitty’s engagement ring being stolen from her finger in a care home. Burnham acknowledged that changing pension policy could carry a political cost, but said difficult reform was necessary.

The pension proposal drew criticism from across politics and the labour movement. Unite general secretary Sharon Graham said the government should have considered another route, such as a wealth tax. Conservative leader Kemi Badenoch warned that Labour’s plans would make further tax rises inevitable, while Reform UK leader Nigel Farage accused Burnham of targeting older people. Liberal Democrat leader Sir Ed Davey said families could not wait until after another election and argued care should not be funded by poorer pensioners.

Burnham’s speech, delivered to a packed conference hall in Liverpool, lasted more than an hour. He arrived to “All Together Now” by local band The Farm and made togetherness a theme, calling for an end to a decade of division. At times he appeared emotional while speaking about his father, Roy, who died earlier this month. He recalled his family’s working-class aspirations and said the government wanted to open similar opportunities to others.

On water, Burnham said he wanted to repeal what he called Margaret Thatcher’s ideological ban on public ownership of water companies. He said legislation would begin a 10-year transition to a different water system and give mayors more powers to hold companies to account. He also said councils would be able to acquire poorly maintained private rental homes more easily when landlords failed to act after warnings, with legal changes to follow if needed.

Burnham said Brexit had done more harm than good and signalled that he would explore closer UK-EU relations. Ahead of talks expected later this year with EU leaders, he said he would present options for Britain’s long-term relationship with the bloc and seek consensus on a way forward. He also announced a national commission on electoral reform, inviting all parties to take part. Labour, he said, would contest the next election with a commitment to change the voting system so every vote counts. Skills Minister Baroness Smith of Malvern said electoral reform was not among her main priorities, though she would be interested in the commission’s findings.

The prime minister also called for investment in young people and changes to education and welfare. He said comprehensive education should give academic and technical routes equal standing and argued that welfare needed a fundamental rethink to support new opportunities for young people. Green Party leader Zack Polanski dismissed the speech as offering little beyond half-measures, repeated announcements and incremental changes.