The Local Government Association has voiced support for improving pay in adult social care but is warning that the proposed Fair Pay Agreement model will be unworkable without sufficient funding and direct involvement from local government in negotiations.
In its submission to the Department of Health and Social Care’s consultation on the Fair Pay Agreement in Adult Social Care, the LGA stresses that councils must be placed at the heart of the process. Local authorities are the largest commissioners of adult social care services, holding a statutory responsibility to ensure people receiving care can live independently and with dignity in their own communities.
In 2025/26, councils spent £26.7 billion on adult social care, accounting for around 40% of total local authority budgets. The LGA says this level of spending already places significant strain on councils, many of which are facing ongoing financial pressures.
The Government has announced that £500 million will be made available for the first Fair Pay Agreement in 2028, drawn from the £4 billion investment outlined in the Spending Review. However, the LGA cautions that this funding includes income from council tax rises and is unlikely to be sufficient when spread across a workforce of around 1.6 million adult social care staff.
The LGA warns that introducing a Fair Pay Agreement without full funding risks placing unsustainable financial pressure on council budgets, potentially affecting care provision and wider local services. It argues that councils should not be expected to shoulder additional costs or legal liabilities without guaranteed central government support.
On behalf of councils in England, the LGA is calling for a Fair Pay Agreement model that includes full central government funding for all associated costs, direct local government representation on the Adult Social Care Negotiating Body (ASCNB), a comprehensive Equality Impact Assessment, and proper recognition of the legal, financial and administrative responsibilities placed on councils.
Chair of the LGA’s Local Government Resources Committee, Cllr Pete Marland, said:
“The focus on improving pay in adult social care is important and a vital step towards securing long-term sustainability for the sector and its workforce.
“However, current funding proposal is not likely to be sufficient to cover the full cost of a Fair Pay Agreement and councils cannot be expected to fork out for the additional costs associated with implementation. Councils need assurances that all costs arising from the introduction of FPAs will be covered by central government.
“Local government has a critical role in adult social care for local people, but is proposed to have minimal engagement in the development of an FPA. Local government needs to be part of decision-making to avoid a scenario where the introduction of an FPA jeopardises the supply of care and sustainability of council finances."
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