Andy Burnham is set to outline proposals to hand significant powers and money to mayors to get people back into work as a key plank of his drive to cut the ballooning benefits bill.

The likely next prime minister will deliver a major speech on the economy on Monday which will focus on transferring power out of Westminster to help “rewire” the British economy.

It will include a plan to devolve power to English regions to help tackle rising spending on welfare, two sources with knowledge of the preparations told The i Paper.

This is likely to include giving mayors the responsibility for tackling benefits dependence and helping people back into work, with regions potentially receiving central government cash based on how successful they are at delivering the plan.

Burnham presided over a similar model as Greater Manchester mayor, with the Working Well scheme helping at least 25,000 people back into work. It was built up into a comprehensive programme after an initial pilot proved successful.