Following his ascent to Prime Minister on Monday, Andy Burnham has initiated a significant shake-up of the Labour Cabinet, dismissing those closely aligned with his predecessor, Keir Starmer. The transition is set to cost taxpayers over £200,000 in severance payments for the ousted ministers.
Among those removed from their positions are Keir Starmer and Rachel Reeves, along with ten other individuals who served in the previous administration. Mr. Burnham's reshuffle, which continued late into Monday night, saw a number of his Northern allies appointed to replace the departing ministers.
Severance Payments for Sacked Ministers
Ministers dismissed from the Cabinet are eligible for a severance payment equivalent to 25% of their annual salary. For Members of Parliament serving in the Cabinet, this amounts to a salary of £67,505, in addition to their MP salary of £98,599. This results in a severance payment of £16,876 for each sacked MP.
Ministers who were members of the House of Lords, such as Lord Hermer, received a higher ministerial salary of £104,360. Consequently, their severance payment is £26,090. As Prime Minister, Keir Starmer commanded an annual salary of £75,440 on top of his MP salary, making his severance payment £18,860.
In total, the departures from Mr. Starmer's Cabinet are expected to incur a taxpayer bill of £222,924. The list of ministers in line for these payments includes Rachel Reeves, David Lammy, Steve Reed, Peter Kyle, Liz Kendall, Darren Jones, Hilary Benn, Jo Stevens, Nick Thomas-Symonds, Lord Hermer, and Baroness Chapman.
Burnham's New Cabinet Appointments
Mr. Burnham is expected to enact further changes within the government, with a reshuffle of junior ministerial positions anticipated. His appointments to replace the Starmer loyalists include Sheffield Heeley MP Louise Haigh as Chancellor of the Duchy of Lancaster and First Secretary of State, positioning her as the second-highest ranking official in the Cabinet. Lucy Powell, MP for Manchester Central and Labour's deputy leader, has been appointed Education Secretary, while Anneliese Midgley, MP for Knowsley, will serve as Chief Whip.
Angela Rayner, MP for Ashton-under-Lyne, has returned to her former role as Housing, Communities and Local Government Secretary. This marks her reentry into the Cabinet less than a year after her resignation following an admission regarding incorrect stamp duty payment on a property. At the time of her resignation in September of the previous year, Ms. Rayner received a severance payment of £16,876 from the Ministry of Housing, Communities and Local Government.
Record Number of Women in Cabinet
A notable feature of Mr. Burnham's new Cabinet is the appointment of a record number of women, with females now outnumbering males for the first time. The current Cabinet comprises 23 full members, with 12 women and 11 men. This represents an increase from Sir Keir's final Cabinet, which had 10 women and 13 men. The previous record for female representation was 11 women out of 22 full members in Sir Keir’s first Cabinet in July 2024.
Across all ministerial attendees at Mr. Burnham's Cabinet meetings, which includes 23 full members and five others, women constitute 50% (14 individuals). This figure surpasses the previous record of 48% of all attendees in Sir Keir’s initial Cabinet.