Andy Burnham has declared he will challenge Sir Keir Starmer for the Labour leadership if he wins a by-election this week. This raises the question: what could his premiership mean for your finances? The Mayor of Greater Manchester is contesting the Makerfield seat, a historically safe Labour constituency now threatened by Reform UK. Burnham aims to return to Westminster to "bring the change we have brought to Greater Manchester to the whole of the UK and make politics work properly for people."
Keeping the Triple Lock
Among Burnham's key pledges is a commitment to the triple lock mechanism, which ensures the state pension rises annually by the highest of wage growth, inflation, or 2.5%. This aligns with current Labour policy, as well as that of Reform UK and the Conservatives. In an interview with the i Paper, Burnham stated it would be "very damaging" to break Labour's manifesto commitment to pensioners. He emphasized, "I think, given where we are with trust in politics, and particularly following the debate over winter fuel ... which still comes up on doorsteps a lot here in Makerfield, I think you've got to stick to the manifesto commitment."
Protecting Pensioners from Income Tax Freeze
Burnham has also indicated he would maintain Chancellor Rachel Reeves' plans to exempt pensioners whose income exceeds the personal allowance threshold from income tax. The state pension is projected to rise above the frozen £12,570 threshold next year, potentially pushing many pensioners into a new tax bracket. He told the i Paper: "What I have heard on doorsteps is pensioners saying ... the freezing of the personal allowance has dragged more and more pensioners into tax. So, I do think you need to look at that issue as well." Dennis Reed, director of the charity Silver Voices, previously warned that "many more pensioners would be plunged into poverty" unless exempted.
Recompense for WASPI Women
Burnham has reopened the debate on compensation for Women Against State Pension Inequality (WASPI), those born in the 1950s affected by state pension age changes. He stated the women "deserve some recompense for the unfairness," though his team later clarified that full compensation is not on the table; alternatives could include early access to cheaper travel schemes. While in opposition, senior Labour figures, including Sir Keir Starmer, backed the WASPI campaign, which argues the communication of the state pension age increase was unfair. However, since taking office, the party has refused compensation demands, ruling out payments in January.
These potential pension policy changes are part of broader tax plans Burnham has hinted at, including revisiting inheritance tax for farmers and punitive business rates for small UK firms.
