Andy Burnham declared he will hit pensioners in the pocket to help fund a huge Labour lurch to the Left today, vowing to put Britain on a 'new path'.

In an unashamedly Socialist first leader's speech to conference, the PM said the party's next manifesto will commit to scrapping the 'triple lock' on state pensions.

Slowing the pace of increases to payments to the elderly will generate 'savings' that will go towards funding a giant NHS-style social care system - which could cost £18billion a year. 

A highly emotional Mr Burnham told activists he would think of his father Roy, who died recently, as he 'makes the case' for the 'new settlement' - becoming tearful at times during the speech. 

The idea was applauded in the hall, but has already caused a storm among unions and even unrest in the Cabinet. Critics have warned it is 'electoral suicide'. 

The government believes it will cost pensioners £15billion a year by 2040 - or £1,136 each - meaning tax rises are still likely to be needed to fill the shortfall.

Conservative leader Kemi Badenoch this afternoon warned: 'Nothing (Andy) Burnham announced today will do anything to fix Britain's long-term problems. 

'He had no plan to fix our stagnant economy. No plan to fund defence. No plan to sort out the spiralling welfare bill, beyond more government schemes.

'His proposal to change the triple lock is already falling apart under scrutiny, and it won't generate enough savings to fund a nationalised care system for another two decades, which means more tax rises are inevitable.'

The premier made clear he wants a 1970s-style big-state Government controlling key parts of the economy. He urged a switch to a proportional representation system to help the Left stay in power and drive his vision through. 

Labour will fight the next election on a platform of abolishing first past the post, fuelling fears that chaotic 'rainbow coalitions' of parties could end up dominating.

Mr Burnham insisted Britain had been 'on the wrong path for a long time', pointing to 'deindustrialisation, deregulation, privatisation, austerity and Brexit'.

His speech also fuelled suggestions he could seek to lead Britain back into the EU, vowing to look at closer ties with the bloc, with officials not ruling out it forming part of the next manifesto.

He said he wanted to give people 'hope again', comparing his Government to Attlee's that introduced the NHS in 1945. He committed to a new wave of council housing - without saying where the money will come from - and declared that Thatcherite Right to Buy rules will be ditched for new builds. 

In other big moments in the speech today: 

• Mr Burnham insisted people with only the state pension for income will not be dragged into the tax system next year, despite the personal allowance falling behind the payments; 
• The PM promised a law to repeal Thatcher's 'ideological ban on public ownership of water companies', with a 10-year plan of restoring public control;
• He hinted more tax hikes might be needed at the Budget, telling conference that he 'has to be honest about what the country can afford' and will stick to fiscal rules; 
• Mr Burnham repeatedly condemned Brexit and hinted he will look at relations with the EU at a summit this Autumn, amid rumours rejoining could be in the next manifesto;
• The premier said he would focus on getting growth in the Midlands and North, saying Britain was brimming with 'working-class aspiration'. 

'We built the common good. Or at least we did until the 1980s,' Mr Burnham said. 'Suddenly, the common wealth we had created for the many was seen as an opportunity for the few.

'Homes. Water. Energy. Transport. Care. Broken up and sold off.'

Mr Burnham said the Right had given up 'control'. 'Economic control weakened by selling off essentials,' he said.

'Political control corroded by the hollowing out of councils. Immigration control weakened by Brexit.

'Later this year, we will publish our plan for Britain. It will set out how, over 10 years, we will make this country work for you again.

'More control of the basics so that we can make it more functional. More power in the hands of people and places to set their own ambitions.'

Mr Burnham said a new social care service would be 'free at the point of need and no care charges paid out of your basic state pension'.

'We will start laying the ground now for the National Care Service and introduce it in the next Parliament,' he said.

'It will be fully funded, and not through borrowing. 

'Conference, I won't pretend some of this won't be difficult. I accept I may pay a political price.

'But someone has to go through the pain barrier and rip the plaster off.

'I am being honest. We promised in our manifesto to keep the Triple Lock unchanged throughout this Parliament.

'I will honour that promise. That will take the state pension to a record high.

'But from 2030 we will adjust it. From then the state pension will continue to rise every year at least by prices or 2.5 per cent.

'And it will hold its value relative to earnings over time so that pensioners will always share in the rising prosperity of the nation.

'This change will generate significant savings which we will use to build up our National Care Service.'

He added: 'A state pension that rises every year. No care charges.

'And a high-quality National Care Service to give peace of mind in later life.

'A new settlement for older people and their families.

'In memory of my dad and out of respect for everyone who cared for him.'

However, the premier is already facing Labour fury over 'suicidal' moves to fund at least part of his free-spending prospectus by scrapping the state pension 'triple lock'. 

Unions warned it was effectively 'picking the pockets' of the elderly, with signs of disquiet stretching into the Cabinet.

Sharon Graham, general secretary of Unite said that 'going to the well of pensioners before going for the super rich is wrong', while Reform's Robert Jenrick said: 'It's just mean. Why is it always pensioners who are asked to be the first to make sacrifices?'

The ratchet - which means payments go up by the highest out of inflation, earnings and 2.5 per cent - was introduced by the Coalition Government.

The IFS think-tank said if the Labour model had been in place since 2011 it would have wiped out £9billion of the £16billion increase in costs of the state pension up to last year. 

The step is particularly controversial as the premier has stubbornly dismissed the idea of cuts to benefits such as PIP disability benefits, instead making the case for reforms to get people into work.

In an unusual move, Mr Burnham pulled his most senior ministers out of fringe events for a briefing on his ideas just hours before he was due to speak. 

Mr Burnham's speech was heavy on rhetoric but contained relatively little immediate concrete action. He suggested that he would need at least 10 years to bring about fundamental change, saying: 'I have to be honest about what the country can afford.

'I will stick to our fiscal rules to get borrowing and debt down.

'The approach I am outlining today is a responsible one.'

In another pivotal announcement, Mr Burnham said he would 'underpin our plan for Britain with a new politics'.

He warned that the Left could not 'open the door of No10 to a divisive government on 30 per cent of the vote or less'.

'We will contest the next election with a manifesto commitment to change the electoral system so everyone's vote counts and everyone's voice is heard,' Mr Burnham said.

The PM again dismissed calls for outright cuts to benefits, instead arguing that he can invest to bring down costs.

'If we build a new generation of council homes, we will save billions from housing benefit over the decade,' he said.

'If we get energy bills down, we will better control inflation and support the economy.

'If we change the way we support people, we will get the welfare bill down.

'Not through crude cuts. That should never be the Labour way.

'But by investing in people's success, supporting them to get where they want to be, rather than paying for failure.'

Two months after brutally ousting Keir Starmer, Mr Burnham paid tribute to the former PM. 

Echoing the conference slogan of 'Hope Again', Mr Burnham told members that 'hope comes from honesty and from saying the things politicians usually avoid'.

He also announced a new publicly-owned 'Great British Grid' in a bid to bring UK energy costs down in line with European nations within a decade.

Cabinet ministers spent the past 24 hours refusing to commit to keeping the triple lock beyond this Parliament.

On a tour of broadcast studios before the speech, Labour Deputy Leader Lucy Powell said only that Mr Burnham was prepared to take on difficult issues.

Housing Secretary Angela Rayner suggested pensioners would be willing to take the hit if they know social care will get better.

However, Bridget Phillipson sounded a much more negative note, suggesting that curbing state pensions could look like intergeneration warfare. 

Ending his speech, Mr Burnham said: 'It's time to draw a line...

'You may disagree with some or all of what I've said today but I have given you what you often say is missing from politics – honesty, ideas and a clear direction for the country we all love.'

He added: 'If you agree with enough of what I've said, get behind this plan and get behind each other – it's time to draw a line.'

The backdrop to Mr Burnham's big conference moment is an increasingly stormy economic situation, with the Middle East crisis causing chaos on energy markets. 

As he grapples with the books for a Budget on October 28, Chancellor John Healey warned delegates yesterday that there could not be a spending spree like under Tony Blair after 1997.

Inflation, slowing growth and surging debt costs have been eroding Mr Healey's 'headroom' against the Government's fiscal rules, meaning he is likely to need spending cuts or tax rises. The former would be fiercely resisted by Labour MPs. 

YouGov polling released today suggests that 64 per cent of Labour members think that taxes and Government spending are too low. That is out of step with the wider public, where just 21 per cent hold the same opinion.

In a potential boon for Mr Burnham internally, pensions are the most popular area for spending cuts among Labour activists, with 32 per cent saying that is where they could find savings if necessary.

However, among Britons more generally only 8 per cent would cut pensions, with 60 per cent preferring overseas aid and 42 per cent saying welfare.