Incoming Prime Minister Andy Burnham is facing instant controversy after appointing convicted fraudster Louise Haigh to a crucial role in his Cabinet. She takes up office as First Secretary of State and Chancellor of the Duchy of Lancaster, placing her directly at the heart of No 10 with sweeping new responsibilities across the Cabinet Office.
Background of the conviction
Ms Haigh, one of Mr Burnham’s closest allies and a driving force behind his ousting of Sir Keir Starmer, pleaded guilty in 2014 to making a false report to police. In 2013 she told officers her work phone had been stolen in a mugging, only to later find it at home. She received a conditional discharge. The conviction, now spent, triggered her resignation as transport secretary in late 2024.
Swift removal of fraud oversight
In a swift damage-limitation move, oversight of the Public Sector Fraud Authority was removed from her remit within hours and transferred to Work and Pensions Secretary Pat McFadden. The Cabinet Office insisted the decision was pre-planned as part of a wider restructuring to “slim down the centre of government” and had “nothing to do with her fraud conviction”.
The appointment has sparked widespread anger. Conservative-leaning commentator Nile Gardiner said: “Andy Burnham’s socialist government is already descending into chaos. And it’s only the second day.” Reform UK supporter and political commentator Ben Graham was blunt. He told The Telegraph: “Another highlight of day one of Andy Burnham’s new Cabinet was convicted fraudster Louise Haigh being stripped of her responsibility for tackling public sector fraud as Cabinet Office Minister. You genuinely couldn’t make this up.”
Criticism on social media
On X, critics highlighted the irony of her retained broader role. One post noted she still oversees “Propriety and ethics” despite losing the fraud brief, adding: “You couldn’t make it up.” Another added: “Ordinary people can lose their jobs over dishonesty. In Westminster, it apparently earns you a promotion.”
Mr Burnham, who entered Downing Street on Monday pledging a “cost-of-living government,” has moved quickly to reshape the top team, sidelining several Starmer loyalists. Allies of Ms Haigh have defended her return, citing her political skill and arguing the historical offence was minor and fully addressed. However, the episode risks damaging the new Prime Minister’s promise of renewal. Labour insiders have been largely muted, while opposition voices question whether standards in public life now operate on a sliding scale.
Government response
The government maintained that several functions, including the fraud authority, are being realigned with departments best placed to handle them — such as the Department for Work and Pensions, where most fraud work occurs. A Cabinet Office spokesperson said: "Changes to departmental structures were agreed ahead of Ministerial appointments. Several functions are being moved out of the Cabinet Office to slim down the centre of government, this includes the Public Sector Fraud Authority moving to the DWP because most work tackling fraud happens in that department. Claiming otherwise is completely inaccurate."
