General Council Report 2025
3.1 The economy
The government inherited an economy that had been failed by a decade and a half of Conservative policies. Growth was the worst for at least a century, and workers had endured the longest pay crisis The TUC has called for a national conversation on tax, urging the government to consider a fairer and more progressive tax system, including taxes on wealth. for two centuries. Public services had been stretched to breaking point as a result of austerity policies, which had the aim of repairing the public finances but instead led to the public debt ratio continuing to rise. On top of this came the steepest rise in inflation for 40 years.
Composite 4 set out that the relationship between growth and public spending works in both directions. The TUC has continued to make a strong case for investment and, as the resolution sets out, has continued to call for a “significant real-terms increase in public spending and investment, both as an immediate necessity and as part of a longer-term economic strategy for sustainable growth”. At the autumn budget the newly elected Labour government took important steps in this direction.
At the Spending Review 2025, the government reported that real departmental spending growth would average 2.3 per cent (day-to-day and capital) over the parliament, greatly larger than any other parliament since the global financial crisis (excepting the coronavirus pandemic). Specifically on capital spending, public sector net investment as a share of GDP is set to rise to 2.6 per cent a year from 2.0 per cent under the Conservatives. The package included increased subsidies to help meet the goals of composite 9, including “making safe, affordable, well built, environmentally friendly housing available to all workers”.
The TUC has called for a national conversation on tax, urging the government to consider a fairer and more progressive tax system, including taxes on wealth.
These increases are financed in part by higher borrowing and also by increasing some taxes on wealth and raising employer National Insurance contributions. The International Monetary Fund (IMF) observed: “The authorities’ fiscal plans strike a good balance between supporting growth and safeguarding fiscal sustainability.”
There are still significant pressures on the economy. The Bank of England has held interest rates high. This has meant ongoing pressures on people and businesses, and a prolonged slump in household spending. There have been more promising signs at the
start of 2025, with stronger first-quarter GDP driven in part by stronger retail sales. However, US tariffs have had significant downward impacts on trade, despite the government’s success in negotiating a rapid trade deal.
The TUC has consistently argued, including at meetings of the Executive Committee with the governor of the Bank of England, that rate cuts need to come faster. We have warned that the dangers of a wage price spiral are exaggerated. Our analysis has shown in general that those countries with strong consumer demand have enjoyed stronger GDP growth, with no penalty in terms of higher inflation.
We have also urged the government to hold firm on spending increases, even in the face of higher interest rates and weaker growth than anticipated. This should involve a further shift of the burden of taxation from work to wealth. In line with composite 4 and resolution 11, the TUC has called for a national conversation on tax, urging the government to consider a fairer and more progressive tax system, including taxes on wealth. We have set out the case for the equalisation of capital gains tax with income tax. And our own polling shows strong public support for taxing those with the broadest shoulders more. We have also raised concerns about the Office for Budget Responsibility’s approach to modelling: having wrongly judged that Osborne’s austerity would crowd in private spending, it now judges that chancellor Rachel Reeves’s increased spending will crowd out private spending. As composite 4 recognised, there is a strong case to address these “unnecessarily restrictive and arbitrary fiscal rules”. The TUC response to the government’s spending review consultation urged review of these processes.
3.2 The labour market
According to the Labour Force Survey (LFS), over the past six months the employment rate is up to 75.1 per cent from 74.9 cent, but the unemployment rate is also up to 4.6 per cent from 4.3 per cent. The difference is made up by falling economic inactivity. However, inactivity because of sickness at 2.8 million is still at near record-high levels, down only marginally (65,000) on the autumn 2023 peak. A particular concern is the high level of youth unemployment, which is at half a million or 12.7 per cent.
Given concerns about the accuracy of these headline measures due to ongoing issues with the LFS, many commentators are focusing on payroll information. These suggest the labour market is fragile and show employee numbers – particularly for the private sector – falling since the middle of 2024. Total employee posts are down 270,000 over the year to May 2025. This is echoed by vacancy figures, which are now at 736,000 having fallen for 35 months. Total vacancies are now 83,000 (10.1 per cent) below their pre-Covid-19 (December2019- February 2020) level.
In response, the TUC has continued to make the case for less restrictive monetary policies along with ongoing government investment.
3.3 Industrial strategy
Our work in this area is guided by composites 5 and 18 along with resolutions 21 and 23.
Assistant general secretary Kate Bell has been appointed to the Industrial Strategy Advisory Council and in this role has informed the formation of the government’s industrial strategy with a focus on good jobs. The TUC held roundtables with the minister for industry and with the chair and vice-chair of the Industrial Strategy Advisory Council and affiliates to press this point.
More widely, the TUC has advocated for a strong industrial strategy that focuses on good job creation. This includes requiring companies that receive government support or contracts to create or support good jobs. We have also pushed for ambitious infrastructure investment from the government, successfully influencing projects such as electricity grid upgrades and the Sizewell C nuclear power station.
Through our Futureproofing Industry project, we have campaigned to lower industrial electricity prices to help secure the future of manufacturing jobs. We have also developed proposals to ensure that no oil or gas sector worker is left behind as the industry contracts, working closely with offshore workers’ unions and engaging the government on these proposals.
We launched the We Need A Plan campaign, which calls for a robust industrial strategy to ensure the long-term success
of manufacturing industries and to protect workers as industries evolve. We have also advocated for worker representation on all government-convened councils that develop industrial policies. This effort has led to successful trade union appointments to the Net Zero Council, the Net Zero Taskforce, and the Offshore Wind Industry Council’s skills taskforce.
In addition, the TUC has pushed for improved economic regulation that promotes workforce resilience, social justice, and increased long-term infrastructure investment. It has helped build connections between civil servants drafting industrial policies and the relevant unions. We have also supported and amplified the steel unions’ successful campaign for government
intervention to protect jobs at the Scunthorpe steelworks.
Finally, we have advocated for alignment with the EU on carbon tax mechanisms and welcomed the government’s commitment to align the Emissions Trading Schemes.
3.4 Pay and the national minimum wage
The TUC has campaigned to get wages rising across the economy. We have made regular media interventions that have highlighted the pay crisis and its impact on living standards.
We submitted evidence to the Low Pay Commission calling for the minimum wage to be raised to 75 per cent of median earnings so that it delivers a £15 per hour minimum – for all workers regardless of age. We led a delegation of unions to give oral evidence to the Low Pay Commission. Following submissions by the TUC and affiliates, the government announced an increase in the national living wage (NLW) to £12.21 per hour from April 2025. It also increased youth rates to £10 for 18- to 20-year- olds and £7.55 for under-18s.
The TUC Minimum Wage Enforcement Group has continued to meet, bringing together unions, advice agencies and relevant government departments and enforcement bodies.
We continue to contribute to the work of the Living Wage Foundation, promoting the voluntary living wage as a minimum rate for the lowest- paid workers.
3.5 Workers’ capital, corporate governance and executive pay
In November, the TUC participated in a ministerial roundtable on the (Draft) Audit and Corporate Governance Reform Bill. We welcomed the proposed bill but argued that wider reform was needed to equip the country and the economy for the challenges of the future. In line with resolutions 22 and 40, we proposed the inclusion of elected worker directors on company boards; reform of directors’ duties to remove the prioritisation of shareholder interests; and replacing ‘employee’ with ‘worker’ or ‘workforce’ throughout the Companies Act.
In February, the TUC responded to a Financial Reporting Council consultation on the Stewardship Code. We argued that how investors exercise their corporate governance rights has a significant impact on other company stakeholders, the environment and the wider public interest; and that the Stewardship Code’s core role
is to boost transparency and investor accountability for these impacts.
In July, a Private Members’ Bill calling for reform of directors’ duties had its second reading. The TUC circulated a briefing to MPs setting out its proposals and making the case for reform.
The TUC has continued to coordinate Trade Union Share Owners (TUSO), an initiative bringing together union funds to collaborate over voting and engagement with companies.
3.6 Social security and sick pay
The TUC’s work in this area was informed by resolutions 33, 34 and 47.
We continued to work with affiliated unions on tackling food poverty and campaigning for universal free school meals for children. We welcomed the government’s announcement that free school meals would be extended to all children in families claiming Universal Credit.
We made a submission to the government’s child poverty strategy, which acknowledged the role of social security in addressing this issue. We recognised that increasing employment levels, better job security and rising pay will increase household income, and that in-work benefits also play an essential role in improving living standards.
A union delegation met with the minister for employment to discuss child poverty. Issues with the design of Universal Credit (including around the five-week wait, assessment periods, and taper rates and work allowances) were raised. There was a separate conversation on these issues with Universal Credit with the minister for social security and disability.
Our campaign for decent sick pay was sustained, and we responded to the government’s consultation on Making Work Pay: strengthening statutory sick pay.
We highlighted the impact of the proposed cuts in disability and incapacity benefits announced in the green paper Pathways to
Work: reforming benefits and support to get Britain working. We also responded to the Work and Pensions Select Committee consultation on the green paper, assessing the impact of and setting out our opposition to government reforms and proposed cuts on disabled workers and also on younger workers, particularly those with neurodiversity challenges and others that are at greater risk of being out of employment, education or training. Employment minister Alison McGovern met with representatives of the TUC’s Disabled Workers Committee and Young Workers Committee to look at how the government can tailor employment support more effectively – the beginning of a regular dialogue that the minister has agreed to.
Our campaign for decent sick pay was sustained, and we responded to the government’s consultation on Making Work Pay: strengthening statutory sick pay.
We highlighted the impact of the proposed cuts in disability and incapacity benefits announced in the green paper Pathways to
Work: reforming benefits and support to get Britain working. We also responded to the Work and Pensions Select Committee consultation on the green paper, assessing the impact of and setting out our opposition to government reforms and proposed cuts on disabled workers and also on younger workers, particularly those with neurodiversity challenges and others that are at greater risk of being out of employment, education or training. Employment minister Alison McGovern met with representatives of the TUC’s Disabled Workers Committee and Young Workers Committee to look at how the government can tailor employment support more effectively – the beginning of a regular dialogue that the minister has agreed to.
3.7 Pensions
The TUC has continued to be the leading advocate for the interests of working people in the pension system.
We have engaged with the government to influence its two-phase pensions review. We coordinated union responses to the first phase, which focused on investments, through the Trade Union Pension Specialists network. We submitted responses to calls for evidence and consultations on consolidation of defined contribution schemes, the future of defined benefit funds, and local government pension scheme (LGPS) pooling. We also took part in ministerial roundtables on the scope of the review and organised union roundtables with ministers and officials at His Majesty’s Treasury (HMT) and Ministry of Housing, Communities and Local Government (MHCLG) to push for member representation on LGPS pools.
We campaigned for the government to carry out the second phase of the review, which will focus on adequacy, writing to the pensions minister in December to support this.
In April we held our pensions conference, with keynote speeches from the pensions minister and the chief executive of the Pensions Regulator.
In line with resolution 33, the TUC lobbied for the reversal of the decision to means test winter fuel payments (WFPs), raising this with the pensions minister and calling for a Work and Pensions Committee investigation, which we then submitted written evidence to. In June, the government raised the eligibility criteria to receive WFP from being in receipt of Pension Credit, to having an individual income of £35,000, meaning three-quarters of pensioners will now receive the benefit.
The success of government plans for economic growth hinges on repairing and rebuilding public services.
3.8 Strong public services
The success of government plans for economic growth hinges on repairing and rebuilding public services. Unions representing members in the public sector have worked with government to address shared challenges. Following composite 11, we have campaigned for:
- fully funded fair pay rises for public sector workers
- delivery of the Make Work Pay’s insourcing and procurement commitments
- stabilised funding for public services, including local government and post-16 education
- reconvening of the Public Services Forum or a similar mechanism to ensure meaningful engagement with trades unions in all public sector reform discussions.
While the government’s additional funding for pay decisions for 2024/25 and 2025/26 is welcome, we continue to advocate for proper trade union engagement on pay and wider terms and conditions to address the recruitment and retention crisis, long working hours and unsustainable workloads. Engagement is crucial for joint problem solving on cross-cutting issues, including the introduction of AI in public services.
3.9 National Health Service
In line with composite 12, the TUC has echoed health unions’ calls for inflation-proof pay rises for NHS staff as a first
step to addressing real-terms pay decline, recognising the immense damage caused by more than a decade of pay restraint.
In our evidence to the 2024 autumn budget and 2025 comprehensive spending review, we highlighted the 100,000+ vacancies in the NHS. We stressed that recruitment and retention challenges create unfair working conditions for the existing workforce, exacerbating stress and burnout while also holding back delivery of the government’s vision for the NHS.
We have engaged with unions and government on insourcing in the NHS, including practical support for unions campaigning to bring services back in-house. We have stressed that wholly owned subsidiaries in the NHS – known as SubCos – present very similar risks to outsourcing and should not be equated with bringing services back in-house.
As directed by resolution 45, we have worked with unions to consider how to more effectively represent neurodivergent members in the NHS through up-to-date training and resources, including a workshop at UnionReps Connect 2024. Our work in this area is also
informed by resolution 56.
3.10 Education
The TUC has supported education unions’ ambitions to work with government to determine fairer outcomes for the education workforce and learners. The creation of social partnership working with the
The TUC has supported education unions' ambition to work with government to determine fairer outcomes for the education workforce and learners.
The TUC has also called for sufficient social care spending to enable the FPA to deliver much- needed improvements in care sector workers’ pay and working conditions. This position was set out in our submissions to the Health and Social Care Select Committee’s inquiry on establishment of the Improving Education Together agreement has been a key milestone, bringing together unions, employer representatives and government with the explicit objective to “co-create the design and implementation of education policy”.
Alongside education unions and in line with composite 8, we have campaigned for the extension of free school meal (FSM) provision for primary and secondary school children and young people. We welcomed the government’s expansion of free school meals to families in receipt of Universal Credit as a step towards addressing food poverty. Kate Bell, TUC assistant general secretary, is
a member of the Department for Education’s Opportunities Mission Reference Group.
Funding for post-16 education has also been an area of focus. The TUC has repeatedly made the case to government that investment in post-16 education needs to be targeted to address the workforce crises in further education (FE) and higher education (HE) institutions, in accordance with resolution 64.
We have emphasised that the government’s ambitions for growth and public services will not be delivered without a well-funded and stable post- 16 education sector – and that fundamental barriers to training the workforce of the future, such as pay disparities faced by FE lecturers when compared to other teaching professions and industry roles, must be addressed.
In line with composites 14 and 15, we are working with education unions to understand how we can best support their efforts to improve the health, safety and wellbeing of the workforce and resist attacks on the teachers’ pension scheme. This includes activity undertaken through the Public Services Liaison Group.
3.11 Social care
In line with resolution 48, the TUC has worked with affiliates and government to develop a social care fair pay agreement (FPA). Adult Social Care Reform: the cost of inaction and the 2025 Spending Review.
We have also built understanding among government and other stakeholders around how an ambitious FPA can pave the way towards a comprehensive pay and conditions framework within a national care service. Alongside this, the TUC has made a strong case for a national social care workforce strategy.
The TUC has worked with affiliates to spotlight the exploitation faced by social care workers. We continue to convene a working group on international recruitment in social care with the DHSC. We have raised with the Home Office concerns about the exploitation of international recruits and worked with the Gangmasters and Labour Abuse Authority (GLAA) around the extension of labour provider licencing to the social care sector.
The TUC and its affiliates have secured care provider signup to the Dying to Work Charter and submitted joint evidence as core participants in the UK Covid-19 Inquiry module 6 on the care sector. TUC regions have built knowledge of the challenges faced by social care workers and priority policy measures needed, including through a TUC Midlands Carers’ Week webinar.
Following our participation in the 2024 International Labour Conference discussion on decent work in the care economy, we were invited to join the International Labour Organization (ILO) working group on care economy
statistics. We have also provided expert input into several academic studies.
3.12 Local government and fire and rescue
It has been a year of both continuity and change for local government.
There has been ongoing uncertainty for local government finances. Central government has made welcome interventions to ward off immediate threats of bankruptcy but has not tackled longer-term reform.
We have continued to advocate for a fair funding settlement for local government and the fire service that provides the capacity for local authorities to meet their responsibilities and that also addresses the unequal funding distribution across the country. Our work in this area has been informed by resolution 59.
More so than any other area, local government has borne the brunt of public funding cuts under previous governments. It has been left with expectations of delivering more with much less resource. Our submissions to the current government
on spending decisions have highlighted increased local government funding as a priority.
Change is on the horizon with the government’s devolution and local government reforms. We have undertaken a wide- ranging consultation with affiliates across England to review our position on devolution and to inform our response to the upcoming legislation on local government reform. In addition, we have commissioned independent research to build the social and economic case for preventative spending at a local level.
3.13 Civil service and justice
Our work in this area has been informed by resolutions 46, 58, 61 and 70. The TUC has emphasised to government the importance of inclusive reform of the prison education service.
Recent announcements that strengthen the link between a prisoner’s sentence and their engagement with prison education services make this more important than ever.
The government views implementation of AI and digital reform in the civil service as central to its mission of improving public sector productivity and anticipates £45bn in annual savings as a result. In response, we have established a cross-public-sector working group on this issue to support efforts to ensure worker voice in any changes in the civil service.
The TUC gave evidence to the Science, Innovation and Technology Select Committee to support its investigation of the use of new digital technologies across the public sector. We highlighted the importance of unions being brought in at the earliest possible stage of any digitisation project.
As affiliates have identified, the government’s plans on devolution provide an opportunity to push to re-
establish greater local control over the probation system. We will continue to support affiliates in making this case, in addition to the further asks set out in resolution 60.
In accordance with resolution 8, we will also work with affiliates that represent staff in quangos to lift all restrictions on informational picketing.
3.14 Public procurement and insourcing
The TUC has worked to ensure that public ownership and in-house delivery becomes the default setting for public services. We have worked with affiliates to build the evidence base for insourcing and developed detailed policy proposals for how public services that are currently outsourced can brought back in-house at the earliest opportunity, and with collectively agreed public sector terms and conditions.
We have amplified trade union experiences of insourcing to support delivery of the government’s commitment to deliver the biggest wave of insourcing of public services in a generation. This has included convening a roundtable bringing together trade unions and government officials to discuss trade union perspectives and learning.
We advocated for the spending review to harness insourcing to drive public sector productivity gains, end the extraction of profit from the public purse and guarantee decent working conditions for workers delivering essential public services.
We made a strong case for procurement reform to end the race to the bottom in outsourced services and developed proposals for a robust and comprehensive two-tier workforce code. We continue to convene affiliates in the procurement and outsourcing working group, which has provided a forum for engagement with government policy as well as wider learning and information sharing.
As part of the Our Work Matters campaign, we have supported affiliate organising and outsourced workers’ industrial action, held several webinars and run digital campaigning training for full-time officers.
We also supported the global union movement, including by presenting at a Public Services International workshop for trade unions on insourcing and re- municipalisation.
3.15 Transport
In line with composite 7 and emergency resolution 4, the TUC has consistently made the case for a progressive and accessible transport system and there has been a series of positive moves from the government on rail nationalisation and bus franchising and major investment in local transport.
We have made the case through multiple research briefings for MPs and stakeholders and direct engagement with officials for greater rail investment as a route to driving economic growth.
We have convened a working group on the government’s bus legislation, seeking to address concerns about workers’ terms and conditions and lack of data on workplace violence. We also pushed for greater freedom for local and regional authorities to establish new municipal bus services.
We have established new regular discussion and information-sharing forums with transport officials to better support policy making and government decisions.
We have directly lobbied ministers in support of expansion of aviation capacity, along with seeking assurances that this will be done in line with the government’s environmental commitments.
We were proud to support workers in the hard-fought Royal Fleet Auxiliary dispute, in line with emergency resolution 1, which delivered significant wins on pay and conditions when it concluded in January this year.
As set out in resolution 30, we have worked with affiliates to push the government on its support for seafarers. The Employment Rights Bill paves the way for a mandatory seafarers’ charter and new powers will see more frequent rest periods, more robust welfare and training requirements for operators, safer working patterns and greater protections for wages beyond UK waters.
We continue to support and coordinate the framework agreement between HS2 Ltd and unions in the sector. As part of the project’s current ‘reset’ initiative, we have agreed to jointly update and revise the framework agreement with a view to improving conditions for workers.
3.16 Arts and creative sector
The arts and creative sector is vital to the economy. Creative workers are key contributors to the UK’s success but they face economic vulnerability as noted in composite 6. They also face threats to freedom of expression, as noted in
resolution 24. The TUC supports the industrial interests and artistic freedom of creative workers, including through membership of the Industrial Strategy Advisory Council. We also support specific campaigns in the sector such as the
NUJ’s News Recovery Plan, as outlined in resolution 27 and campaigning efforts to improve conditions for freelancers in line with composite 2.
Workers in the broadcasting, arts and entertainment sectors are seeing their intellectual property rights infringed by artificial intelligence (AI) models. We have convened a regular working group of creative and education unions to coordinate a joint trade union response. We launched a manifesto on AI that outlines recommendations to address the impact of AI on creative work and workers. We also responded to the government’s consultation on AI and copyright, setting out our view that existing copyright laws should be enforced and strengthened.
Working with Labour peers and the PFA in line with resolution 32, we have been able to win key concessions in the Football Governance Bill to ensure that players were listed in the legislation as key stakeholders to be consulted.
3.17 Regions
The TUC North East, Yorkshire & Humber region, in its inaugural year, immediately engaged in supporting workers and their unions in disputes, particularly within higher education and the steel industry. A key activity has been organising briefings for activists and fostering a collective response to the rise of the populist far right.
The TUC Midlands region undertook significant campaign activity to improve public services and workers’ rights.
Through extensive joint union campaigning and lobbying, the region successfully saw the West Midlands Combined Authority (WMCA) introduce a publicly controlled bus network, a longstanding demand. It also secured a fair pay and conditions agreement for creative workers. In the East Midlands, the East Midlands Combined Authority (EMCA) now has a union seat on its board, and progress is being made towards signing the Dying to Work Charter.
The TUC London, East & South East region continued to champion key TUC priorities, including activity supporting the Our Work Matters insourcing campaign. The region also successfully ran its six-day Black Activists Programme for the second time and rolled out national seminars focused on combating the far right and populist movements.
The TUC South West region focused on strengthening parliamentary engagement with unions and supporting organising activity aimed at young workers. A key activity was a parliamentary event bringing together regional
secretaries from affiliated unions with MPs. The region also held its annual summer patrol activity, specifically designed to support recruitment of young workers.
The TUC North West region provided crucial support to unions engaged in industrial action, offering practical and targeted assistance during high-profile disputes at Livv Housing and the Royal Liverpool University Hospital. A significant focus for the region has been building a robust response to far-right violence following incidents in Southport and Liverpool in 2024. This involved hosting meetings and delivering training to support union representatives in addressing these challenges.
3.18 TUC Cymru report
Over the past year, TUC Cymru has advanced on all fronts – from education and equality to AI and caring responsibilities – proving that when workers unite and fight, real change happens.
Wales Union Learning Fund
The Wales Union Learning Fund (WULF) marked 25 years of helping thousands boost their skills and confidence. Despite severe funding cuts in 2024, we didn’t back down. We adapted, delivered, and impressed – securing full funding for 2025/26.
Activist development
Our activist programmes are thriving. Black, young, and women activists are stepping up, learning the ropes, and even running for Senedd seats. Some have taken their voices global, attending conferences on AI and fighting extremism.
AI
TUC Cymru is championing ethical AI in Wales through tripartite social partnership. Backed by new guidance and a worker-focused toolkit, this approach puts fairness, transparency, and people
at the heart of public sector innovation. We’re exploring devolved legislation to ensure AI protects and enhances jobs, focusing on reskilling rather than replacement.
Equality
We’ve launched a bold campaign against sexual harassment, with powerful videos, a new reps’ training course, and a clear message: it’s never acceptable at work.
We’re championing disabled workers, with new training and a toolkit already influencing policy. We’re also supporting
carers – those juggling work and unpaid care – by developing resources to push for better rights and recognition.
Welsh language rights are firmly on our agenda. A new charter
is helping workers use Welsh at work, supporting the goal of a bilingual Wales by 2050.
As the Welsh government delivers the Anti-Racism Action Plan, trade unions are ensuring workplaces provide fair, quality work for Black workers. We’ve published a 10-point action plan to help reps tackle racism at work.
We’re strategically organising, rebuilding unity and promoting solidarity across workplaces – ready to fight populist, divisive hatred in all Welsh workplaces.
Unions and the World of Work
The Unions and the World of Work project ensures the next generation knows its rights. With lessons in schools and colleges, young people are learning what unions do and why they matter.
Our message is clear: we’re not just reacting to change – we’re leading it.
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