Government Announces £500m for First Ever Fair Pay Agreement for Care Workers
The Government has today announced a major step in boosting the wages of adult social care workers across England, as a £500 million investment is announced into the first ever Fair Pay Agreement. Secretary of State for Health and Social Care Wes Streeting announced the £500m investment at the party conference in Liverpool.
A new body to negotiate changes to pay and terms and conditions for care workers will be set up including both employers and trade unions.
The body will aim to improve recruitment and retention, giving staff better recognition for their important work and this initial investment will mean that by 2028, care workers will expect to see a boost in their yearly wages.
The cash injection follows the government’s immediate actions to boost the social care sector, including a £2,000 uplift in the carers’ allowance and an increase in the Disabled Facilities Grant to provide 15,000 more home adaptations.
A public consultation to gather views on the design of the Fair Pay Agreement process has also been launched today by government.
Following this, the Adult Social Care Negotiating Body will be established through regulations in 2026 – with the first Fair Pay Agreement coming into force in 2028.
It is supported by other government reforms that will ensure a career in adult social care is respected and rewarded – by backing progression through a universal career structure, funding training and qualifications, and recognising the complex skills care workers bring – so working in care is seen as a profession, not just a job.
Not only will this improve recruitment, but this important first step between workers and employers in the sector will also ensure the delivery of high-quality care, as the government makes headway on its mission to build an NHS that’s fit for the future.
As well as putting more money in pockets for care workers, it is a down payment on higher wages for the future, as establishing collective bargaining in this critical sector means that the workers will have a strong voice for years to come.
The Fair Pay Agreement will be backed by law currently progressing in Parliament through the Employment Rights Bill, and will empower employers and unions to negotiate better terms and conditions.
Baroness Louise Casey is working on the independent commission into adult social care to build cross-party consensus and deliver recommendations on the Government commitment to create a National Care Service.
Today’s announcement follows the Spending Review settlement which saw a 2.6% real terms average annual increase in local government core spending power over the Spending Review period, including £3.4 billion of new grant funding for vital local services. This £500m forms part of an increase of over £4 billion of additional funding available for adult social care in 2028-29, compared to 2025-26.
The government has also taken steps to boost wages for the lowest paid workers including care workers, with the National Living Wage increasing by 6.7% to £12.21 this April. This increase is expected to benefit around 3 million low paid workers. This represents an increase of £1,400 to the gross annual earnings of a full-time worker on the National Living Wage.
