UK Care Workforce Twice As Likely To Live In Poverty As Average Worker
A new report from the Health Foundation reveals that people working in care homes and their families are twice as likely to live in poverty as the average UK worker. Analysing national data from 2021/22 to 2023/24, the independent health charity finds that 1 in 5 residential care workers in the UK lives in poverty, more than 1 in 10 experience food insecurity, meaning they risk going without food, and 15% rely on Universal Credit. 1 in 10 children of residential care workers go without essentials, like a warm winter coat.
Our jobs help shape the risk of living in poverty. 80% of UK jobs paid more than the average care worker wage of £12 an hour in 2024, many care workers are on zero-hours contracts, and exploitation of workers is on the rise in social care. Successive governments have failed to invest in our care system, affecting how much care providers pay workers.
The government’s Employment Rights Bill has the potential to transform work in social care, helping to ensure people are cared for and lift workers out of poverty. Planned ‘Fair Pay Agreements’ for social care could set a new sector minimum wage. Our new analysis estimates that raising the wage floor in social care to the level of clinical support workers and administrative workers in the NHS (Agenda for Change Upper Band 3) would result in an average 6.6% rise in household income for residential care workers and their families, leading to an important reduction in poverty.
The Health Foundation has previously estimated that £2.3bn would be needed in 2028/29 to increase pay for the care workforce to at least NHS Agenda for Change Band 3.
While the recent Spending Review reiterated the government’s commitment to a Fair Pay Agreement, it did not provide enough funding to both meet growing demand for care and fund a meaningful improvement to care workers’ pay. Current spending plans risk leaving local authorities to choose between providing people with the care they need and funding much-needed wage rises for the care workforce.
Alongside workforce measures, wider improvements to social care are essential. The Casey Commission should move swiftly to bring forward its recommendations, including to help improve access to publicly funded care and better protect people against care costs.
Beyond social care, bold policy action is needed to tackle poverty in the UK, which worsens people’s health and cuts lives short. Currently, the government is choosing not to take the measures that would have the most significant impact on poverty, such as scrapping the two-child limit on benefits.
Lucinda Allen, Policy Fellow at the Health Foundation, said,
“Caring for older people and disabled people is vital and fulfilling work, but it has long been underpaid and undervalued. Sadly, it is no surprise that so many care workers and their families are struggling to keep up with bills, afford enough food, put savings aside, and provide warm clothing for their children.”
“Our report also finds worrying inequalities affecting migrant workers in social care. Over one-third of residential care workers born outside the UK live in poverty, compared to one tenth of those born in the UK.”
“Around 1 in every 20 working people in England is employed in social care. Enhancing pay and working conditions in the care sector could be an important part of the government’s growth agenda, improve people’s lives, and help fill the 131,000 social care vacancies. The government must deliver on its promise of fair pay for care workers, alongside wider improvements to our care system.”
