At a Manchester Evening News hustings for the Makerfield by‑election, Greater Manchester mayor Andy Burnham pledged to compensate women affected by the state pension age rise and warned that current student‑loan policies punish young people. The commitments come as Labour’s fiscal stance faces market scrutiny and internnal pressure ahead of the upcoming leadership contest .

£10 billion compensation pledge for the "Waspi" women

Burnham said he would back the Women Against State Pension Inequality (Waspi) campaign, which argues that 3.6 million women born in the 1950s were not adequately warned that their pension age would rise from 60 to 65. A Parliamentary and Health Service Ombudsman report recommended compensation of between £1,000 and £2,950 per claimant, potentially exceedng £10 billion in total. "I have long supported the campaign and I feel uncomfortable when politicians were all holding up their banner and then got into government and didn’t do anything," Burnham told the audience, echoing Labour’s 2023 promise to compensate the group.

Student‑loan relief hinted amid criticsm of Westminster cuts

Burnham also attacked the government’s treatment of graduates, saying young people are "targeted for cuts" through the "Plan 2" loan scheme, which has seen interest rates rise sharply. he warned that graduates believe they are paying off loans when, in fact, balances are growing. While he stopped short of outlining a concrete policy, his remarks align with growing calls from student groups for a comprehensive overhaul of the loan system.

Fiscal backdrop: record tax‑raising and defence spending squeeze

Labour Chancellor Rachel Reeves has already pushed the tax burden to a record high,adding an extra £75 billion annually and making her the biggest tax‑raiser in six decades. At the same time, the Treasury is under pressure to fund a multi‑billion‑pound defence shortfall, limiting room for new spending promises. Burnham’s proposals therefore raise questions about how Labour could fund both compensation and loan relief without further widening the fiscal gap.

Who will foot the bill? Unanswered cost‑allocation questioons

Two speicfic uncertainties remain: first, whether the £10 billion compensation estimate will be financed through new taxes, borrowing, or reallocation of existing funds; second, what concrete changes to the student‑loan system Burnham intends to pursue, given the Treasury’s tight budget. The source notes that Labour’s current fiscal trajectory already strains bond markets, and Burnham’s earlier suggestion to de‑emphasise bond‑market pressures adds another layer of complexity.

Political stakes: Burnham’s challenge to Keir Starmer

Burnham is positioning himself as a left‑leaning alternative to Prime Minister Keir Starmer, promising bold spending while Starmer’s government has resisted the Waspi compensation, citing affordability concerns. The mayor’s statements signal a potential “bidding war” among Labour hopefuls, with Wes Streeting touting wealth taxes and Burnham floating ideas such as a land‑value tax and council‑tax revaluation. As the leadership contest looms, these policy pledges could reshape the party’s fiscal narrative.