Andy Burnham told to let retirees 'sacrifice' state pensions in exchange for OBEs
Prime Minister Andy Burnham is being told to let retirees "sacrifice" their state pension payments in exchange for a prestigious Office of the British Empire (OBE).
A think tank with close ties to Prime Minister Andy Burnham has urged him to create a "pensions sacrifice OBE" scheme, enabling affluent retirees to voluntarily forgo their state pension for a minimum of three years in return for an honour.
The proposal comes from Compass, which has compiled a 100-policy blueprint for Mr Burnham's first 100 days in office, according to a report seen by The Independent. The document will be released in three instalments over the coming weeks.
Compass is led by Neal Lawson, who co-founded Mainstream Labour, the faction established in August 2025 with Mr Burnham's backing as he prepared to mount a challenge against Sir Keir Starmer.
The proposal is in response to Britain's deepening pension crisis, fuelled by an ageing population, falling birth rates and a dwindling workforce.
Concerningly, the Office for Budget Responsibility (OBR) has identified the state pension as the single biggest element of welfare expenditure, forecasting that costs will rise by 2.7 per cent of gross domestic product (GDP) between 2028/29 and 2073/74.
Much of that increase is driven by demographic shifts and the triple-lock mechanism, which guarantees pensions grow annually by the highest of average earnings growth, CPI inflation, or 2.5 per cent.
Compass said the voluntary opt-out would be "modelled on the altruism of groups like Patriotic Millionaires", a nonpartisan body of wealthy individuals that campaigns for higher taxation on the rich, improved worker pay and reduced economic inequality.
Chancellor John Healey has promised that his upcoming Autumn Budget on October 28 will be"built on fiscal discipline".
Mr Burnham must contend with a defence spending shortfall of at least £4.7billion inherited from Sir Keir Starmer's plans, alongside pressure to fund care system reforms, raise taxes or increase borrowing.
Economic growth remains sluggish, partly as a consequence of the Iran war, while cost of living pressures continue to mount.
The Prime Minister has already made several early spending commitments since entering Downing Street, including a 20 per cent reduction in business rates for pubs, clubs and live music venues, a VAT cut on electricity bills and a £2 cap on bus fares from January.
The business rate cuts alone carry an estimated annual price tag of £100million, with no clear funding source identified.
Beyond the pensions proposal, Compass is pressing Mr Burnham to introduce wealth taxes: a two per cent levy on assets exceeding £1million and a further charge of between five and ten per cent on fortunes above £10million.
The think tank argues that revenue from these measures would fund a universal basic income for those most in need. The report also calls for "emergency decarbonisation action", proposing a 50mph speed limit for petrol and diesel vehicles.
Additionally, Compass recommends establishing a national maternity fund inspired by Denmark's DA Barsel scheme, under which every employer contributes a modest quarterly payment per worker into a central pot.