Labour needs to deliver on its workers’ rights promises and not offer a “Diet Coke” version of the policy to win voters back, Britain’s top trade union boss has warned – as he calls for the return of Angela Rayner.
Paul Nowak, general secretary of the Trades Union Congress (TUC), told The i Paper that the Government should double down on tackling the cost of living as its top priority in 2026.
He declined to back calls from some in Labour to replace Sir Keir Starmer, saying that the Prime Minister should “set aside political manouevrings” and concentrate on keeping the pledges he made to voters to improve their lives.
And he suggested that Rayner, who was forced to quit as Starmer’s deputy in September, “has got a huge amount to offer British politics” and should return to the front bench.
The TUC, the umbrella organisation for most unions in England and Wales, has been supportive of the Government since it took power – but Nowak signalled an increasing frustration with Labour’s failure to deliver change rapidly.
He said: “There’s lots of people out there disillusioned by mainstream politics, and I get it entirely, people aren’t seeing the benefits of economic growth in their pockets, they have had too many years of stagnant wages, declining living standards.
“I want the Government to build on the steps they took in the Budget to boost living standards and make sure that in 2026, they have got a laser-like focus on the money in people’s pockets and people feeling better off.”
Nowak insisted that “working people cannot afford Reform”, claiming that the right-wing populists had not kept their promises in the councils that they now run.
He added: “The Government needs to go further and faster, because far too many people just haven’t seen a really marked improvement in their living standards, and Labour was elected at that last general election on the promise of change. For lots of people, change feels a long way away…
“If you ask the broad British public at the moment, do you think things are going well, the obvious answer is no, the Government should be doing more.”
Asked whether he was sympathetic to calls for Starmer to be replaced, Nowak replied: “He is the man who is leading our country at the moment, and when a Government is trailing in the polls and the Prime Minister isn’t doing great in the polls, there is always going to be speculation about leadership challenges.
“I think what we need to do is set aside political manouevrings. I’m not really interested in who’s up and who’s down in the Cabinet, potential leadership contests – what I am interested in is this Prime Minister and a Labour Government delivering on behalf of working people. And that means in 2026 delivering on living standards.”
Trade unions have been backing the Employment Rights Act, which guarantees a range of new workplace rights and was originally steered by Rayner before she lost her Cabinet post. Asked whether he would like to see her back in Government, Nowak said: “Angela Rayner has got a huge amount to offer British politics.
“She has made a massive contribution already. She played a key part in the delivery of that Employment Rights Act, but I think going forward she’s going to have a key role to play in British politics as well.
“The public wants authentic politicians, and a working-class woman who’s got a huge amount of talent would be an asset to this or any other government. So, yeah, I’d like to see her back in frontline politics.
“But this isn’t just about Angela Rayner. This is about the whole of the Parliamentary Labour Party and the Labour Government upping its game and delivering that manifesto that they won that huge majority on.
“If they do that, if they start to make inroads into those issues around living standards, then the polls will look after themselves. Don’t chase the polls, you know, chase the real goal.”
Nowak welcomed the passing of the Employment Rights Act into law, despite a late climbdown by ministers which scrapped the right to protection against unfair dismissal from day one of taking a new job, creating a six-month qualifying period instead.
He said he would oppose any further watering down of the package in the coming months, when details of some aspects will be carried out through a process of consultation, Government guidance and secondary legislation. His priorities will include enforcing a ban on compulsory zero-hours contracts, and making sure that trade unions have access to workplaces.
“For me, the key thing is a Diet Coke version of the Employment Rights Bill is not going to cut it,” he said. Businesses have opposed the new laws which they say will make it harder to hire people and lead to more unemployment.
Ministers are planning a cost-of-living drive to begin in January, with Starmer considering making a speech on the issue, and the rest of the Cabinet also ordered to make a public argument that Government policies will drive up living standards.
The Treasury will seek to convince businesses and markets that it is serious about promoting economic growth, after complaints that the last Budget did not do enough in that regard. Spencer Livermore, Financial Secretary to the Treasury, told The i Paper: “We are going further and faster to deliver higher economic growth and boost living standards across the country.
“Britain was the fastest growing economy in the G7 for the first half of this year and the OBR has just upgraded their overall forecast for UK growth this year to 1.5 per cent. Wages are up more in the first year of this Government than the first decade under the Conservatives and the Bank of England have had the confidence to cut interest rates six times since the election.
“But clearly there is more to do, and that is why we will continue to drive higher growth through our strategy of stability, investment, and reform. That includes investing in new roads, homes, and energy infrastructure and backing Britain’s fastest growing companies through our plans to help entrepreneurs start, scale and stay in the UK.”
