Labour must fix cost of living to see off ‘disaster’ Nigel Farage, warns TUC

TUC General Secretary Paul Nowak said Keir Starmer needs to confront Nigel Farage’s party head on in 2026, as he warned – ‘Working class people can’t afford Reform’

People must feel better off in 2026 or Labour will lose more ground to Reform, the head of the trade union movement has warned.

TUC General Secretary Paul Nowak said Keir Starmer must tackle cost of living pressures heaping misery on households as millions head to the polls next year in Scotland, Wales and local elections in England. He said Labour needs to confront Nigel Farage head on, and warned: “Working class people can’t afford Reform”.

But he said living standards must improve or people will continue to listen to Reform’s hollow promises. It comes as a Deltapoll survey for The Mirror revealed the cost of living is the most important issue facing Brits and their families by some distance. The polling also found voters want it to be Mr Starmer’s top priority in 2026 – followed by the NHS and immigration.

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When it came to priorities for the Government, 61% put controlling the cost of living, with improving the NHS second again, on 55%, followed by reducing the number of immigrants on 41%.

Growing the economy was on just 34%, cutting crime 17%, and fixing public services a lowly 13%.

Mr Nowak said: “There are far too many people out there who don’t feel confident enough to go out and buy a new car or to book a holiday or to take the kids out, because they’re worried about what the economic future holds.

“It’s also the best way of pulling the rug from under Nigel Farage’s feet because when people get disillusioned with mainstream politics and they think it’s not delivering, the only person who benefits is Nigel Farage and his mates.”

The TUC leader praised Mr Starmer for branding Reform’s immigration plans “racist” in September. He said: “There is a straight line between the rhetoric that Farage uses and the likes of Tommy Robinson and that thuggish activity we saw on our streets as well. It’s divisive, dog whistle politics.

“Now, does that mean that those who vote Reform are racist? Absolutely not. I understand there are lots of people who voted reform because they’re frustrated with mainstream politics, they feel that change hasn’t come quick enough.”

But he added: “Nigel Farage would be a disaster for working class people in this country. It’ll send Britain into a cul de sac, a complete dead end, economically and politically, and I think Britain is better than Nigel Farage. Absolutely in my bones, I feel that Britain is better than Nigel Farage.

Mr Nowak admitted Labour had made missteps in Government on botched disability benefit cuts and the abandoned plan to slash the winter fuel allowance for millions of pensioners. But he said the party needed to shout about their achievements and stop apologising for delivering on Labour values.

He said: “It really felt like when there were hard choices to be made, we were asking some of the most vulnerable, poorest people, to take the brunt of those hard choices.

“The Government’s starting to make inroads but this coming year they need to have that absolute relentless focus on living standards and show working class people and their communities whose side they’re on.”

Mr Nowak dismissed whispers about leadership plots, telling Labour: “Don’t forget the day job.” “I think it’d be a big mistake to focus on internal party politics when millions of working people out there are saying we’re struggling to get by,” he said.

Mr Nowak said Rachel Reeves ’s Budget was a clear signal of Labour values – but the Government needed to go further to show the economy works for everyone, not just the wealthiest few.

“For the last 15 years, the average punter in this country, the average person on the street, feels that those at the top have done really well while the rest of us are being asked to bide our time and be patient and to pick up the bill. That can’t continue,” he said.

“I think Labour just needs to be proudly Labour. There is no political mileage at all in trying to out-Reform Reform. I think that’s a complete dead end. I think they just need to be proud to be Labour and proud of the stuff that will make a difference to working class people. And we need to see more of it, frankly.”

One such policy is the Government’s workers rights programme – which came into law before Christmas – must be delivered in full, he said. The plan will deliver better rights for millions of people, including sick pay, parental leave and protections from unfair dismissal.

Mr Nowak said: “It’s the most important thing the Government can do, because far too many people, including people in solid middle income jobs, just feel that their pay packets just don’t go as far as they used to. And it’s not a feeling, it’s a fact. Your weekly shopping bill feels much more under strain than it would have two or three years ago.”

He added: “It’s absolutely essential they stick to the timetable, and it’s absolutely essential that we’ve got a full fat employment rights bill, not a watered down Diet Coke version, because that won’t make the difference in workplaces that people need.”

The PM in his Christmas message this week acknowledged people’s ongoing struggles with the cost of living – promising it is his government’s “priority” to tackle the issue.

He has told ministers 2026 “would be the year that Britain turned renewal into reality”, with a series of major policies set to come into force, including an increase in neighbourhood policing, the lifting of the two child benefit cap, a rail fares freeze and a planned cut in energy bills.

The Mirror survey also showed 37% of voters are pessimistic about their own household finances over the next 12 months and believe it will get worse. Things were expected to get a lot worse by 25%, and just a bit worse by 12%. Two in ten (20%) said that their situation will get better while 39% said it would stay the same. Only 20% thought it would get better, of which only 5% was a lot better.

Responding to the polling, Labour MP Rosie Wrighting MP said: “Tackling the cost of living is the priority of our Labour Government. Whether it be cutting energy bills, boosting the living wage, or helping parents with free childcare, the government is determined to make sure people keep more of their hard earned cash and have more to spend on what really matters.

“I know everyone across government will be focussing relentlessly on this throughout 2026 – as well as making further progress on cutting NHS waiting lists and fixing our NHS after over a decade of Tory decline.”

A Labour source added: “We know too many families are still struggling with the cost of living. It’s really positive that wages are £500 higher than they were a year ago, even after inflation. But we know people are still feeling the pinch. The Labour Government is determined to make sure working people right across Britain feel better off.”