Alan Milburn, the Government's youth unemployment adviser, has insisted that Andy Burnham is committed to reforming the welfare system. Milburn said the man widely regarded as prime minister-in-waiting understands that change is "absolutely necessary" to help the roughly one million young people currently out of work or education, framing welfare reform as central to tackling youth joblessness.

The comments follow Burnham's own statement that he would not impose "crude cuts to benefit levels" that would push claimants into "even worse poverty" and provoke a backlash. Milburn argued the Government "got it wrong" in its earlier attempt to cut the soaring welfare bill, and said the better approach is to give young people the opportunity and support to work, pay taxes and reduce their dependency on benefits. He also claimed there is appetite for reform within Labour, despite backbench MPs having forced Keir Starmer to abandon planned £5billion cuts to disability benefits a year ago. Milburn's landmark report on the Neets crisis — under-25s not in education, employment or training — was published in May.