Andy Burnham will be confirmed as Labour leader on Friday and become prime minister on Monday, inheriting a set of immediate political and fiscal challenges. Within his own party, the Women’s Parliamentary Labour Party has submitted a list of demands, including a 50:50 gender balance in both the cabinet and the prime minister’s Downing Street office, according to a draft letter seen by the BBC. Labour lawmakers describe a persistent “boys’ club” culture that they argue has blocked women from the party’s top job—Labour has never elected a female leader, while the opposition Conservatives have been led by four women. Burnham has yet to comment publicly on the demands, and his cabinet choices will be scrutinised as an early test of his commitment to reshaping the party’s internal power structures.

On the fiscal front, the UK Treasury has signalled that the state pension age will need to rise to 68 as early as 2037, seven years sooner than currently legislated, to contain a benefits bill that has already surpassed £146 billion this year. The independent Office for Budget Responsibility calculates that maintaining the existing timetable would cost the Exchequer an additional £6 billion annually. The Washington-based International Monetary Fund, in a report published as Burnham prepares to take office, urged the incoming government to resist increasing overall public spending and to avoid broad-based energy subsidies, pointing to rising pressures from an ageing population, defence commitments and the transition away from fossil fuels. The fund called for any response to energy price shocks to remain “tightly targeted, temporary and budget-neutral.”

Speculation over Burnham’s top appointments has centred on the potential return of former foreign secretary David Miliband, now president of the International Rescue Committee and based in New York. According to party sources, bringing him into the cabinet would require a peerage, following the model used by former prime minister Rishi Sunak to appoint David Cameron. His brother Ed Miliband, the current energy secretary, is also tipped for a senior role, with some reports suggesting he could be offered the foreign secretary post after being blocked from the chancellorship. Analysts in London note that including both brothers would bring experience and bridge party factions, but it would also revive memories of the 2010 leadership contest that pitted them against each other. Separately, Home Secretary Shabana Mahmood is widely expected to be named chancellor, a choice that party insiders say would reassure financial markets.

Outgoing Prime Minister Keir Starmer used his final full day in office to visit Kyiv, where he told President Volodymyr Zelensky that the UK’s support for Ukraine “will not waver” and that the transition would not alter the bilateral dynamic. Burnham’s leadership confirmation on Friday will be followed by a weekend interregnum before Starmer formally recommends him to the King on Monday. The pension reform proposal must be enacted by 2027 to meet the statutory requirement of a ten-year notice period for changes to the state pension age. Burnham’s first cabinet is expected to be announced shortly after he enters Downing Street.