Andy Burnham should introduce a ‘pensions sacrifice OBE’ which would allow wealthy pensioners to opt out of their state pension for at least three years in return for an honour, a cross-party pressure group allied with the prime minister has recommended.

Compass, a leading think tank, has put together a report – seen by – outlining 100 policies they believe the prime minister should introduce in his first 100 days, which will be published in three parts over the next three weeks.

Compass is headed by Neal Lawson, who is also the co-founder of Mainstream Labour, the Burnham-backed faction set up in August 2025 that was closely associated with Mr Burnham when he was preparing to challenge Sir Keir Starmer.

Amid growing pressure on the public finances, the report argues the prime minister should "allow rich, well-off pensioners to opt out of their state pension for 3+ years in return for a 'Pensions Sacrifice” OBE, as a reward for donating funds to education or another popular cause”.

It comes as Britain faces a mounting pension crisis driven by a rapidly aging population, declining birth rates, and a shrinking workforce.

The Office for Budget Responsibility described the state pension as the largest component of welfare spending and projected that spending on it would increase by 2.7 per cent of GDP between 2028/29 and 2073/74, driven by population ageing and the cost of the triple-lock policy - which ensures that the state pension rises by whichever is highest: average wage growth, CPI inflation or 2.5 per cent.

The policy, Compass said, would be "modelled on the altruism of groups like Patriotic Millionaires” – which describes itself as a “nonpartisan organisation of high-net-worth individuals who advocate for higher taxes on the wealthy, better wages for workers, and a reduction in economic inequality”.

Its mission is to “leverage the voice of wealth to build a more just, stable, and inclusive economy and to accelerate the end of extreme wealth”, the organisation says.

It comes as the prime minister faces a number of difficult choices as he prepares for his first budget, with pressure on him to raise taxes, increase borrowing or cut spending on welfare to fund Britain’s growing defence bill and pay for his plan to reform the care system.

He is also under pressure to boost Britain’s sluggish economic growth, which has taken a hit as a result of the Iran war, and ease mounting cost of living pressures.

Within days of taking office, Mr Burnham announced a 20 per cent business rate cut for pubs, clubs and live music venues, a VAT cut to electricity bills and capped bus fares to £2 from January.

The business rate cuts alone are expected to cost the government around £100m per year – but it is unclear how it will be funded.

Mr Burnham is also facing at least a £4.7bn black hole to fill in Sir Keir Starmer’s defence spending plan. But announcing his first budget will take place October 28, Mr Healey vowed it would be “built on fiscal discipline”.

Compass has also piled further pressure on Mr Burnham to consider implementing a wealth tax, suggesting a two per cent wealth tax on every £1m, as well as a tax of 5-10 per cent on wealth greater than £10m to fund universal basic income for citizens in need.

The policy document also advocates for “emergency decarbonisation action”, including a 50mph cap on fossil fuel powered cars and a maternity fund, modelled on Denmark’s DA Barsel fund which sees all companies pay a small quarterly sum per employee into a national fund, from which companies can claim pay for staff during parental leave.

Downing Street has been contacted for comment.