After her defeat, Bondfield resumed her work for NUGMW and was re-elected to the TUC Council. In 1926 she supported the TUC's decision to hold a General Strike, and also the decision to call it off after nine days. Following the resignation of Sir Patrick Hastings in June 1926, Bondfield was adopted as the Labour candidate at Wallsend, and won the subsequent by-election with a majority of over 9,000. Meanwhile, she had accepted appointment to the Blanesburgh Committee, which the Conservative government had set up to consider reforms to the system of unemployment benefit. Her private view, that entitlement to benefits should be related to contributions, was not widely shared in the Labour Party or the TUC. When the committee made recommendations along these lines she signed the report, which became the basis of the Unemployment Insurance Act 1927. Bondfield's association with this legislation permanently shadowed her relationship with the Labour movement.