Burnham adjusts triple lock from 2030 to fund care and reopens EU debate

Andy Burnham used his first Labour conference speech as Prime Minister to set out a long-term plan for Britain, with a National Care Service in England paid for in part by a less generous state pension rise from 2030.

Speaking in Liverpool, Burnham said the country had suffered a decade of drift and division since Brexit. He said Brexit had done more harm than good and announced he would set out options for a closer long-term relationship with the European Union later this year, including the possibility of rejoining. He also promised a commission on electoral reform and a manifesto commitment to change the voting system.

His central domestic announcement was a National Care Service in England, free at the point of use. It would cover personal care costs but not the residential costs of living in a care home, which would remain means-tested. Burnham said everyone would contribute and everyone would be covered, and he compared the model to the principles of the NHS. Details of how it would work are to be developed with a review led by Baroness Louise Casey.

To help pay for it, Burnham said the triple lock would be adjusted from April 2030. He promised to keep the triple lock unchanged for this Parliament. After 2030, the state pension would still rise every year by at least prices or 2.5%, and would hold its value relative to earnings over time. But the annual link to average earnings would be removed, making pension increases less generous than under the current formula. The government estimates the change could save around £15bn a year by 2040. The Institute for Fiscal Studies has estimated longer-term savings of about £20bn, with a range up to £40bn, but analysts warned the change would raise little in the short term and would not by itself cover the full cost of social care. The Treasury and economists suggested tax rises would still be needed.

Unions and opposition parties reacted sharply. Unite general secretary Sharon Graham called the plan morally wrong and electorally wrong. The Conservatives said tax increases to fund social care were a red line. Reform UK said it would oppose the change. Some Labour MPs and union figures said they would rather see wealth taxes than a cut to pension increases. Burnham said he accepted he might pay a political price, but argued someone had to 'rip the plaster off' and deal with social care.

Burnham also announced a set of other policies and pledges. He said a strengthened water bill would repeal what he called Margaret Thatcher's ideological ban on public ownership of water companies. He promised a publicly owned Great British Grid, a new branch of Great British Energy, to challenge private operators. He said VAT would be removed from electricity bills from Thursday and that a 10-year plan would aim to bring UK electricity prices closer to European levels. He announced a Your First Home scheme for first-time buyers in England, with a 2.5% deposit and a government-backed loan worth 20% of a new-build property's value. Ministers also set out powers for councils to take over long-empty homes and promised leasehold reform before Christmas. The government confirmed Avanti West Coast would be brought into public ownership.

On Europe, Burnham said the current relationship was not good enough and that Britain needed a calm discussion about its options, from staying as it is to customs union or single market membership, and potentially rejoining the EU. He ruled out an immediate referendum but later said an in-out referendum could be possible in Labour's next manifesto depending on how the debate developed. French President Emmanuel Macron and Spanish Prime Minister Pedro Sanchez said Britain would be welcome back. EU figures were more cautious, noting that rejoining would mean accepting the rules and costs of membership.

The speech was also deeply personal. Burnham's father Roy died two weeks before the conference after suffering from dementia. Burnham paused for almost a minute as he tried to speak about him, and delegates gave him a standing ovation. He said the country had given his father a good life and had given his sons opportunities he did not have. He said he wanted to build the kind of Britain his father believed in and to keep the United Kingdom together.

The conference took place against a difficult economic backdrop. Energy bills were due to rise by 4% to around £1,700, with forecasts of a further 16% increase in January taking the average bill close to £2,000. The Budget was less than a month away, and the Chancellor, John Healey, was expected to face pressure to help households while sticking to fiscal rules. Labour's poll ratings had improved since Burnham became leader, and the party left Liverpool with the slogan 'hope again', but ministers acknowledged that big promises would take years to deliver and would depend on winning the next general election.