Prime Minister Sir Keir Starmer has said Angela Rayner will return to the cabinet, describing the former deputy prime minister as “hugely talented” in an interview with The Observer. The confirmation follows months of speculation after her September resignation. ITV News and the Guardian reported the comments on Sunday, 7 December.
Rayner stepped down in September after the independent adviser on ministerial interests found she had underpaid stamp duty on an £800,000 flat and fell short of ministerial standards, while noting she had acted with integrity. Coverage at the time identified the property as being in Hove and estimated a shortfall of up to £40,000.
Since leaving government, Rayner has largely stayed out of the spotlight. Lucy Powell was elected Labour’s deputy leader on 25 October after a members’ ballot, replacing Rayner in the party post but not in government. The result and turnout figures were confirmed by the BBC and the Institute for Government.
Rayner’s possible return overlaps with significant changes to the Employment Rights Bill she helped to shape. On 27 November, the Department for Business and Trade set out a compromise package: reduce the qualifying period for ordinary unfair dismissal from 24 months to six months; lift the compensation cap; and proceed with day‑one rights to sick pay and paternity leave from April 2026, alongside establishing a Fair Work Agency.
Subsequently, ministers signalled a start date of 1 January 2027 for the six‑month unfair dismissal right, with employees hired from July 2026 reaching eligibility as they complete six months’ service. This replaces the earlier day‑one proposal and accelerates an implementation window previously discussed for late 2027.
The shift follows sustained resistance in the House of Lords to day‑one protection and a period when ministers were still arguing for it at the despatch box. Hansard shows the government’s earlier position in early November; Acas has separately indicated Royal Assent is expected before end‑2025, paving the way for secondary legislation and guidance.
Rayner had been preparing to table an amendment to bring forward the six‑month right by a year but agreed not to proceed after discussions with Business Secretary Peter Kyle. Reporting indicates she stepped back following those talks as ministers sought to keep the Bill on timetable.
Business groups and unions have accepted elements of the package. The British Retail Consortium welcomed clarity on the six‑month qualifying period and the decision to lift the cap, while the Trades Union Congress backed moving other day‑one rights in 2026 to avoid broader delay. Reuters and the government’s statement set out the consensus reached after negotiations.
For employers, the practical work now sits in 2026 planning: align probation policies with the six‑month threshold; tighten recruitment and early‑performance management; refresh dismissal and grievance procedures; and model exposure given the proposed removal of the compensation cap for ordinary unfair dismissal. Legal and financial press reports say the cap is set to be lifted, increasing potential liabilities in settlement discussions and tribunals.
Politically, Rayner’s re‑emergence would restore a prominent advocate of the Bill to the front bench as it nears Royal Assent. Cabinet minister Pat McFadden said he would welcome her return but stressed the decision rests with the prime minister, in remarks to Sky News reported by Press Association outlets on 7 December.