UK – Burnham promises sweeping change, seeks reform of the pension system

LIVERPOOL, 29 September /ATSH-DPA/ – British Prime Minister Andy Burnham promised today to take the country in a new direction, during his first speech at the Labour Party conference since becoming party leader and prime minister.

Burnham said he aims to give citizens and the state more control over housing, energy and water, and to reform the way care services are provided for people who need help in everyday life. He said he is ready to make major changes in the way the country is run, with the aim of ending what he described as a long period without clear direction and of division in British politics.

Changing the pension system

One of Burnham’s main plans is to change the so-called “triple lock” on pensions. This system guarantees that the state pension rises every year in line with earnings growth, inflation, or by 2.5%, always taking the highest figure. Burnham plans for this guarantee to be changed after the next parliamentary elections. The state pension will continue to rise every year, but it will no longer automatically rise in line with earnings when wages grow faster than inflation or 2.5%. The money saved by this change will be used to create a National Care Service in England, which will provide services for people who need care and assistance.

Plans for water and housing

Burnham also said he aims to change a decision taken in the 1980s during Margaret Thatcher’s government, which banned public ownership of water companies. This would open the way for some water companies to return to public ownership, if it is judged that they do not act in citizens’ interest. He also promised that municipalities will have more power to take control of housing in poor condition if landlords refuse to improve it.

Burnham: Britain has followed the wrong direction

In his speech, Burnham criticised a series of changes made in Britain since the 1980s. He mentioned the closure and downsizing of industries and factories; the removal and easing of some rules controlling businesses; privatisation – the transfer of companies and services from state to private ownership; austerity measures – public spending cuts to reduce the state deficit; and Brexit – Britain’s exit from the European Union. Burnham said these changes have led, in his view, to a country where policies have been oriented more towards the interests of particular groups than towards the general public interest. He compared his plan with the changes undertaken by the Labour government after the Second World War, when institutions and public services were created that aimed to serve all citizens.

“Someone has to confront this change”

Speaking about the change to the pension system, Burnham admitted the decisions could be politically difficult. “I will not pretend that some of these changes will not be difficult. I accept that I may pay a political price,” he said. He added that the savings from changing the pension system will be used to create the National Care Service, which he described as a reform as important as the creation of the National Health Service (NHS).