Labour’s internal debate over welfare policy and party unity has burst into the open as the contest to replace Angela Rayner as deputy leader intensifies, with Lucy Powell and Bridget Phillipson vying for the influential post. The race, which follows a period of turbulence within the party’s leadership, has become a focal point for broader questions about Labour’s direction, its connection with ordinary voters, and its stance on key social issues such as the two-child benefit cap.
Lucy Powell, the Manchester Central MP and former Commons leader, has emerged as a vocal critic of what she calls the government’s "unforced errors" on welfare. In her first broadcast interview since being sacked by Sir Keir Starmer in a recent cabinet reshuffle, Powell told BBC’s Nick Robinson that attempts to cut disability benefits and winter fuel payments had left voters questioning "whose side we are on." She did not mince words, stating, "Some of the mistakes that we’ve made, or some of the unforced errors, have given a sense that we’re not on the side of ordinary people." According to BBC, Powell’s remarks underscore a growing sense among some Labour members that the party’s messaging and policy decisions have drifted from its traditional base.
Powell’s criticisms come at a delicate moment for Labour. A YouGov poll released on September 17, 2025, found that Prime Minister Sir Keir Starmer’s net favourability rating had plunged to -50%, the lowest since he became party leader in 2020. The poll, which surveyed 2,200 adults, revealed that 71% of respondents held an unfavourable opinion of Starmer, including half of those who had voted Labour the previous year. The poll also showed all major party leaders with negative favourability ratings, with Sir Ed Davey of the Liberal Democrats at -6%, the Green Party’s Zack Polanski at -10%, Reform UK’s Nigel Farage at -31%, and Kemi Badenoch at -35%.
Against this backdrop, Powell has urged Labour’s leadership to be clearer and more assertive about scrapping the two-child benefit cap. She described the cap as "the single biggest policy we could do to address child poverty," and argued that even if abolition isn’t immediately possible, the government should be "working towards" it. As she told the Political Thinking podcast, "They might not say it like that, but a fairer economy that works in the interests of the many and not the few, and having a story to tell about whose side we’re on, whose interests we’re serving, unites that voter coalition." Her comments reflect the frustration of many Labour backbenchers and activists who see the cap as a symbol of austerity that runs counter to Labour’s values.
Powell’s campaign for deputy leadership is not without controversy. She has faced persistent speculation that her bid is a stalking horse for other high-profile figures, notably Manchester Mayor Andy Burnham and Energy Secretary Ed Miliband. Powell, who previously served as Miliband’s chief of staff, dismissed such claims as "a classic Westminster bubble obsession." She told the BBC, "Anyone who knows me knows I’m not a proxy for anybody. I’m me. I’m a very independent, strong-minded, effective politician in my own right." She went further, calling suggestions that her candidacy is a proxy war between two men "kind of sexist, but it’s also completely wrong." Powell emphasized, "You’ve got two strong women standing in an open and transparent contest. And instead of talking about the two strong women, everybody’s talking about this being a sort of proxy for war between two men."
Bridget Phillipson, the Education Secretary and Powell’s main rival, has taken a different tack, focusing on party unity and the dangers of internal division. Launching her deputy leadership bid in her Sunderland constituency, Phillipson acknowledged past mistakes but warned against a return to what she termed the "bad old days of divided Labour Party and open old wounds." She told supporters, "If we turn against each other only one person will win – [Reform UK leader] Nigel Farage – but millions more will lose." Her message is clear: the party cannot afford to let internal disputes distract from its mission to win a second term in government.
Despite coming second to Phillipson in terms of nominations from Labour parliamentarians, Powell appears to hold a significant lead among party members, according to polling cited by PA Media. This grassroots support may reflect her willingness to challenge the leadership and advocate for policies that resonate with the party’s base. Powell has made it clear that, if elected, she would not seek a cabinet position. Instead, she aims to serve as a "conduit" between party members and the leadership, ensuring that the voices of the grassroots are heard at the top table. She explained, "If I were elected deputy leader, I would be a conduit for the views of members and tell Sir Keir when we’re getting things wrong." She also noted that Sir Keir Starmer has been "really clear" that David Lammy would replace Angela Rayner as deputy prime minister, allowing her to focus on the deputy leader role full-time.
The debate over welfare policy has drawn criticism from outside Labour as well. Conservative Party chairman Kevin Hollinrake seized on Powell’s comments about the two-child benefit cap, accusing Labour of "fiscal irresponsibility." He said, "Be in no doubt, Labour is the party of fiscal irresponsibility. Only the Conservatives will stop this irresponsible behaviour and the higher taxes that come with it." The exchange highlights the political risks for Labour as it seeks to balance competing demands for social justice and fiscal prudence.
Powell’s own account of her dismissal from the cabinet suggests that her willingness to speak candidly about the concerns of Labour MPs may have cost her. She told the BBC, "I thought I was doing the job I was supposed to be doing, but maybe that wasn’t feedback people wanted to hear." She speculated that her sacking was due in part to her relaying MPs’ deep opposition to proposed welfare cuts—a stance that, while popular with many in the party, may have clashed with the leadership’s strategy.
As the deputy leadership contest unfolds, both Powell and Phillipson are grappling with the challenge of reconnecting Labour with its core supporters while presenting a united front to the electorate. Powell’s emphasis on "body-language"—the need for Labour to project confidence and clarity about its values—strikes a chord with members who fear the party has become too cautious and defensive. Phillipson’s call for unity and discipline, meanwhile, reflects the lessons of past defeats and the imperative to keep the focus on the external opposition, not internal rivals.
The outcome of the contest will shape not only the party’s internal dynamics but also its public image at a time when trust in political leaders is at a low ebb. With the next general election looming, Labour’s ability to present a coherent and compelling vision for the country may hinge on how it resolves these tensions—and on whether its leaders can convince voters that they are, once again, on the side of ordinary people.
