Burnham rows back on £10bn Waspi women offer
Andy Burnham has rowed back on an apparent offer to consider a £10.5bn payout for Waspi women, a group of female pensioners who argue that they were not told about a rise in the state pension age.
Burnham had told activists that he would “stick by the Waspi women – Women Against State Pension Inequality – because they deserve some recompense for the unfairness”, which led to hopes among campaigners that he would bring a £10.5bn payout back onto the table.
But the Manchester mayor, who is standing as Labour’s candidate for a by-election in Makerfield ahead of a leadership bid, U-turned on the idea on Thursday, bringing him into line with the current government which has said it would not compensate Waspi women.
A spokesman for Burnham told the Financial Times “he accepts the final decision has been made in relation to financial compensation but has indicated an openness to considering similar schemes on the Greater Manchester model”.
This appears to reference a system for other forms of compensation, including cut-price travel tickets.
The Waspi campaign was taken up by Starmer and Labour figures when the party was in opposition. It relates to Boomers who say they lost thousands of pounds because they did not know about the rise in the state pension age for women.
A payment of up to £2,950 for each person was recommended in an ombudsman report, while former Labour leader Jeremy Corbyn had previously committed to making a £58bn payout.
Burnham spooks bond traders
Economists and several commentators have widely warned that the requested amount was unaffordable given rising public debt interest costs and intergenerational unfairness.
Upon hearing about Burnham’s comments, Waspi chair Angela Madden said the group required politicians to have the “will” to deliver compensation.
Madden also revealed that campaigners had met with Burnham.
Labour MPs quoted in the Financial Times accused the Manchester mayor of having “lost the plot again” and labelled his overture to Waspi women as “pathetic”.
Bond traders have long warned against a Burnham premiership over fears that fiscal rules would be loosened and further government borrowing would be given the green light.
Borrowing costs rose sharply after bruising local elections for the Labour Party amid fears that it would pave the way for Burnham to challenge Starmer.