Andy Burnham has indicated that reforms to the benefits system will be revisited under his Labour government as he confirmed he wants to bring down welfare spending.
The new prime minister said that these reforms will mean “changing the nature of the support” on offer, including making more awards “conditional”.
Speaking to the BBC, he indicated that this will mean “people taking opportunities that are presented in front of them” in order to maintain the same entitlement.
His comments pave the way for future welfare changes to come, but these are unlikely to be announced until two government-commissioned reviews – one into youth unemployment and one into the Personal Independence Payment (Pip) – deliver their recommendations later this year.
It’s unlikely these will take the form of blunt changes to reduce spending, as Sir Keir Starmer unsuccessfully attempted in July last year. While Mr Burnham is currently very popular among his MPs, he would likely face the same resistance from his backbenchers if a similar approach was taken.
But the former Manchester mayor’s latest interview gives the strongest hint yet of the direction he wants to go on the issue.
Here are the options that the prime minister could be considering on welfare:
Welfare changes for young claimants
The focus on young people in recent debates on welfare has been clear.
In his interview with the BBC, Mr Burnham said: “There are people in the benefits system – young people in their 20s – who have been quite seriously let down, because the support wasn’t there for them when it should’ve been there.”
The former mayor also signalled that the government is considering greater conditionality to restrict benefits for people who do not take up work opportunities when offered.
This is already a key part of universal credit – Britain’s most claimed benefit at 8.4 million people – with payments reduced through sanctions for those who do not carry out the required work-related activity.
However, these rules do not apply to claimants who claim the benefit on health grounds which prevent them from being able to seek or carry out work. Meanwhile, Pip can be claimed in or out of work.
In looking to reform benefits for younger people, it is possible that Mr Burnham’s government could revisit proposals made by Labour last year to restrict the amount of universal credit’s health element claimants under 22 can claim.
This plan was shelved pending the conclusions of the ongoing reviews, but could be picked up or modified if deemed in line with their recommendations.
Mental health benefits overhauled
In his interim report into the Pip, disability minister Sir Stephen Timms found that it is “no longer fit for purpose” in modern Britain.
This is partly due to its inability to handle the rise in “fluctuating conditions” such as depression, anxiety or ADHD, the authors write.
Of the UK’s four million claimants, 1.56 million (39 per cent) have conditions relating to mental health, now making them the largest cohort in receipt of the benefit.
This comes after a rapid increase in claims since 2019, rising from 2.05 million in January that year to 4.01 million in April 2026. Spending on Pip over this time has more than doubled from £15 billion, to around £32 billion in 2025/26.
Last year’s proposals to tweak the Pip assessment criteria last year were criticised for making it effectively harder to claim, especially for people with mental health conditions.
With over 100 Labour MPs rebelling over the plans, it’s unlikely any change would take a similar approach. But the focus on mental health conditions in Sir Stephen’s report indicates that some change around mental health and benefits can be expected.
Better support into work
While changes around mental health or young people may address some of the current concerns around welfare, they also run the risk of increasing pressure on the system elsewhere.
Crucially, experts have warned that simply restricting benefits without accounting for the impacts this will have on poverty and health just creates more pressure on government spending down the line.
Samuel Thomas, senior policy advisor at Z2K, said: “Where we've gone wrong a lot of the time... is having this sort of short-term mindset of ‘we need immediate savings, so we're just going to restrict eligibility’.
“Often these short term immediate attempts to cut benefits backfire, and then it's harder to actually get those sustainable longer term reductions in spending.”
The prime minister’s criticism of crude cuts has been “really welcome”, the benefit expert adds.
“The attempted cuts to Pip last year fell into that category. That that sort of change, not only has a very limited effect on helping people into employment, but it can also actually push some people deeper into crisis and further away from work.”
In its messaging, Downing Street has maintained that any welfare reform will be paired with significantly stronger support measures to help people – particularly young people – move into employment.
This approach may help reassure backbenchers fearing a re-run of last year's chaotic welfare standoff, though the true test will come later this year when both official reviews publish their final proposals, and Mr Burnham’s plan is revealed.
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