Prime Minister Andy Burnham has begun reshaping the Labour government after taking over from Sir Keir Starmer, removing a large group of ministers closely associated with his predecessor.
The sweeping overhaul, which continued late into Monday evening, marked one of the most significant Cabinet reorganisations since Labour entered government.
Among those leaving senior government positions were former Prime Minister Sir Keir Starmer, former Chancellor Rachel Reeves and several other prominent ministers, as Burnham moved quickly to install trusted allies in key positions.
Sacked Ministers Eligible for Taxpayer-Funded Severance
Although the dismissals brought an abrupt end to many ministerial careers, those removed from Cabinet are entitled to statutory severance payments under ministerial rules.
Former Cabinet ministers serving in the House of Commons qualify for compensation equal to 25 per cent of their ministerial salary.
Since Cabinet ministers receive an annual ministerial salary of £67,505 in addition to their parliamentary pay, most departing ministers are expected to receive severance payments of £16,876 each.
Former Prime Minister Sir Keir Starmer, whose ministerial salary as Prime Minister was £75,440 on top of his MP’s salary, is entitled to a payout of £18,860 following his departure from Downing Street.
Meanwhile, ministers serving in the House of Lords receive higher ministerial salaries. As a result, figures such as Lord Hermer are eligible for larger severance payments amounting to £26,090.
More Than £222,000 Expected to Be Paid Out
The combined cost of the Cabinet departures is projected to reach £222,924, with taxpayers covering the statutory severance payments owed to ministers who lost their posts.
Those expected to receive compensation include Rachel Reeves, David Lammy, Steve Reed, Peter Kyle, Liz Kendall, Darren Jones, Hilary Benn, Jo Stevens, Nick Thomas-Symonds, Lord Hermer and Baroness Chapman, alongside Sir Keir Starmer.
The overall figure could increase further if Burnham proceeds with additional changes to junior ministerial positions in the coming days.
Burnham Builds a New Leadership Team
The Prime Minister has wasted little time assembling a Cabinet reflecting his own political priorities and regional support base, drawing heavily from northern Labour MPs and long-standing allies.
Among the highest-profile appointments is Sheffield Heeley MP Louise Haigh, who becomes Chancellor of the Duchy of Lancaster and First Secretary of State, placing her among the most influential figures in government.
Manchester Central MP and Labour deputy leader Lucy Powell has been appointed Education Secretary, while Knowsley MP Anneliese Midgley takes over as Chief Whip, strengthening Burnham’s control over parliamentary business.
Angela Rayner Returns to Government
One of the most notable comebacks in the reshuffle is Angela Rayner, who returns to Cabinet as Housing, Communities and Local Government Secretary.
Rayner resigned from Sir Keir Starmer’s government less than a year ago after acknowledging that she had failed to pay the correct amount of stamp duty on a newly purchased flat.
Her departure from government at the time triggered a ministerial severance payment of £16,876.
Her reappointment signals Burnham’s willingness to restore experienced figures despite previous political setbacks.
Women Hold Majority in Cabinet for the First Time
Burnham’s new administration has also reached a historic milestone in gender representation.
For the first time, women outnumber men among full Cabinet members.
Of the government’s 23 full Cabinet positions, 12 are now held by women while 11 are occupied by men.
The change improves on the composition of Starmer’s final Cabinet, which consisted of 10 women and 13 men.
It also surpasses the previous record established when Labour first entered government in July 2024.
Looking beyond full Cabinet members, women account for 14 of the 28 ministers eligible to attend Cabinet meetings, representing exactly half of all attendees and setting another record for female representation in government.
Further Government Changes Expected
Monday’s reshuffle is expected to be only the beginning of Burnham’s restructuring of the government.
Additional appointments and dismissals among junior ministers are anticipated as the new Prime Minister continues to consolidate his administration and place allies in influential positions across Whitehall.
The early changes demonstrate Burnham’s determination to establish a distinct leadership team while drawing a clear line between his government and the administration led by Sir Keir Starmer.
