In a landmark move to improve pay and conditions for adult social care workers, the Government has announced a £500 million investment to establish the UK’s first-ever Fair Pay Agreement for the sector.
The new Adult Social Care Negotiating Body, set to be established by regulation in 2026, will bring together employers and trade unions to negotiate better wages, terms and conditions for care workers. The first agreement is expected to come into force in 2028, delivering a significant boost to annual earnings for thousands of frontline staff.
The initiative aims to tackle long-standing issues in recruitment and retention by giving care workers the recognition and reward they deserve. It follows immediate government actions including:
- A £2,000 uplift in the carers’ allowance
- An increase in the Disabled Facilities Grant, enabling 15,000 more home adaptations
- A 6.7% rise in the National Living Wage to £12.21, benefiting around 3 million low-paid workers
Together, these measures represent a major investment in the future of adult social care and a commitment to making care work a respected profession, not just a job.
The Fair Pay Agreement is part of wider reforms to create a National Care Service, supported by Baroness Louise Casey’s independent commission. It will be backed by legislation currently progressing through Parliament via the Employment Rights Bill, giving workers a strong collective voice for years to come.
The Government has also pledged to fund training, qualifications, and a universal career structure, helping care workers progress and ensuring high-quality care delivery across England.
A public consultation on the design of the Fair Pay Agreement process has launched today, inviting views from across the sector. This will help shape the negotiating body and ensure it reflects the needs of both workers and employers.
With over £4 billion in additional funding for adult social care planned by 2028–29, today’s announcement marks a transformational moment for the sector and a key step in building an NHS fit for the future.
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