Following his sudden appointment as Prime Minister, Andy Burnham conducted a major cabinet reshuffle, dismissing Keir Starmer and numerous allies. The dismissed ministers, including Rachel Reeves and David Lammy, face a total taxpayer-funded severance bill of nearly £223,000. Burnham filled the roles with his own supporters and achieved a historic first with a cabinet where women outnumber men.
In a dramatic turn of events within the Labour Party, newly installed Prime Minister Andy Burnham initiated a sweeping cabinet reshuffle following his ascension, resulting in the ousting of his predecessor Keir Starmer and a host of Starmer's closest allies from senior government positions.
This wholesale change in the executive team has triggered a significant financial outlay for severance payments to the displaced ministers, while simultaneously ushering in a new cadre of Burnham loyalists and setting a new benchmark for gender representation at the highest levels of government. The transition, which unfolded late into Monday night, marks a definitive shift in the party's leadership trajectory and internal power dynamics. The financial implications of the reshuffle are substantial.
Under UK parliamentary rules, ministers who leave government are entitled to a severance payment amounting to 25 percent of their annual ministerial salary. For the eleven cabinet ministers from the House of Commons who were dismissed-including prominent figures such as Rachel Reeves, David Lammy, and Steve Reed-this translates to a payment of £16,876 each, based on their ministerial salary of £67,505.
Those serving from the House of Lords, like Lord Hermer, receive a higher payment of £26,090, corresponding to their £104,360 annual ministerial pay. Even former Prime Minister Sir Keir Starmer, who earned a combined salary of £174,039 from his roles as MP and Prime Minister, is due a severance of £18,860. The cumulative cost to the taxpayer for these departures is calculated to be £222,924.
This financial package provides a measure of compensation for the abrupt end to their ministerial careers, though it does little to mitigate the political blow of being purged by a rival faction. In a clear effort to consolidate his authority and reward his own supporters, Mr. Burnham filled the vacant positions with a slate of his trusted Northern allies.
Key appointments include Louise Haigh as Chancellor of the Duchy of Lancaster and First Secretary of State, effectively making her the deputy prime minister and the second most powerful figure in the cabinet. Lucy Powell, the Labour deputy leader and MP for Manchester Central, was named Education Secretary, while Anneliese Midgley, MP for Knowsley, took on the crucial role of Chief Whip.
The reshuffle also saw the return of a significant former figure, Angela Rayner, who was reinstated as Secretary of State for Housing, Communities and Local Government. Her reappointment is particularly notable given her dramatic resignation just over ten months prior, following an admission regarding a stamp duty error on a property purchase, for which she had previously received a severance payment. Beyond the personnel changes, the new cabinet under Burnham has achieved a historic milestone in gender parity.
Of the 23 full cabinet members, including the prime minister, 12 are now women and 11 are men. This is the first time women have outnumbered men in a full cabinet and surpasses the previous record of 11 women set by Starmer's first cabinet in 2024.
When including the five additional ministers who attend cabinet, the total of 28 eligible attendees comprises 14 women and 14 men, achieving exact gender parity and exceeding the prior high of 48 percent female representation. This achievement is being highlighted as a defining characteristic of Burnham's initial government formation, signaling a deliberate commitment to diversity at the top echelons of power, a stark contrast to the more male-dominated final cabinet of his predecessor.
The reshuffle extends further with anticipated changes among junior ministerial ranks, promising a continued realignment of the government's personnel in the coming days
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