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UK PM Burnham to set out first steps on social care in speech - Finance news and analysis from Global Banking & Finance Review
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UK PM Burnham to set out first steps on social care in speech

Published by Global Banking & Finance Review

Posted on July 28, 2026

3 min read

· Last updated: July 28, 2026

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PM Andy Burnham Announces First Steps Toward Overhauling UK Social Care

Prime Minister Outlines Vision for Social Care Reform

Introduction and Policy Speech

LONDON, July 28 (Reuters) - British Prime Minister Andy Burnham will on Wednesday set out more details of his approach to overhauling the social care system, including his plans to work with other parties, in his first major policy speech since entering Downing Street.

Burnham became prime minister last week, and has enjoyed a bounce in the governing Labour Party's poll ratings in the days since after announcing measures to reduce the cost of living.

Political Challenges and Fiscal Considerations

But his pledge to "grasp the nettle" on reforming the system for caring for older and disabled adults comes with political risk, as he will need to set out how he plans to pay for any changes while sticking to his fiscal rules.    

Burnham has said that the state-run National Health Service could collapse unless the care sector is reformed because of how many people end up in hospitals who could be cared for elsewhere.

Historical Context and the Need for Reform

"For decades, governments have kicked this issue down the road because they've seen it as too risky, too difficult, and too complicated," Burnham said in a statement ahead of a speech he was due to give on Wednesday.

"We have to find common ground and listen to others to find a way forward."

Cross-Party Collaboration and Funding Issues

Invite to Leaders of Other Parties

INVITE TO LEADERS OF OTHER PARTIES

Burnham first tried to reform the funding of social care when he was health minister under Gordon Brown's premiership, but faced political difficulties and ran out of time before Labour's election loss in 2010. Successive governments since have failed to find solutions.

His office said he had invited the leaders of the opposition Conservative and Liberal Democrat parties to discuss the issue.

Current State of Social Care in Britain

Unlike the NHS, social care in Britain is not free for most people. Access to state-funded social care for older people in England is means-tested and generally requires a high level of need. 

Britain's Institute for Fiscal Studies said in 2024 that due to tighter eligibility criteria, the number of older people receiving state-funded social care in England had fallen by 10% over the past decade, despite an ageing population.

Around one-in-seven older people were likely to incur lifetime care costs of more than £100,000, it added.

The King's Fund, a health think-tank, said English local authorities spent £12 billion ($16 billion) on social care for older people in the 2024/25 financial year, about 8% more than the year before.  

($1 = 0.7517 pounds)

Reporting Credits

(Reporting by Alistair Smout and David Milliken; Editing by Alex Richardson)

Key Takeaways

  • Burnham pledges to ‘grasp the nettle’ of social care reform and emphasize cross‑party cooperation amid fiscal rule constraints.
  • Labour is experiencing a “Burnham bounce”, with improved polling and his personal approval ratings rising.
  • Years of tightening eligibility have reduced state‑funded social care to 10% fewer older adults; local authorities now budget around £24.5 billion in 2024‑25.

Frequently Asked Questions

What will Andy Burnham announce about social care reform?
He will detail his approach to overhauling the social care system and seeking cross-party cooperation.
Why is reforming the UK social care system considered risky?
Reforming social care involves political risks and funding challenges, as governments have previously avoided tough decisions.
How does social care funding in England currently work?
Unlike the NHS, social care is means-tested and not free for most people, with strict eligibility criteria.
Why is urgent reform needed for social care in the UK?
Without reform, the NHS could face collapse due to hospital admissions that could be avoided with better social care.

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