Andy Burnham is prepared to limit benefits for young people and attach work-related conditions to payments, his key ally, Labour grandee Lord Blunkett, has suggested.

Blunkett, the Prime Minister’s political mentor and a Blair-era Cabinet member, said Burnham is “wholeheartedly” behind welfare reforms suggested in a wide-ranging review by youth unemployment tsar Alan Milburn, which are set to propose overhauling the system to get young people into work and drive down the benefits bill.

Lord Blunkett said the decision to keep Pat McFadden as Work and Pensions Secretary – despite being an ally of Sir Keir Starmer – shows Burnham is committed to delivering Milburn’s proposals, and that he “recognises we cannot continue with a welfare bill” that keeps rising.

Shorts

McFadden has hinted that Milburn could recommend restricting access to benefits for 16 to 24-year-olds or attach new work-related conditions to their payments.