Response: Fair Pay Agreement for Care Workers

The Government has confirmed the next steps towards introducing the first Fair Pay Agreement for adult social care in England – including a £500 million funding envelope that will not be ringfenced, raising questions about how much reaches frontline providers.

A new Adult Social Care Negotiating Body, bringing together equal numbers of employer and trade union representatives, will be established to negotiate on pay, terms and conditions, and wider employment matters. Negotiations are expected to begin in April 2027, with the first agreement coming into effect in April 2028.

The £500 million funding envelope will form part of the wider Local Government Finance Settlement rather than being ringfenced specifically for care pay – meaning it will be down to local authorities to decide how much of that funding reaches care providers.

The announcement also includes a further expansion of the Care Workforce Pathway, creating clearer roles and development opportunities across almost all non-clinical adult social care occupations. This is intended to give care workers more defined career routes, from entry-level roles through to specialist and leadership positions, alongside clearer training and progression.

Community Integrated Care has welcomed the announcement, while urging the incoming Prime Minister and ministerial team to make immediate, sustained support for the social care workforce an early priority.

Jim Kane, Chief Executive Officer at Community Integrated Care, said: “Today’s announcement is a welcome step towards recognising and rewarding care workers for the skill, responsibility and impact of their roles.

“With a new Prime Minister and ministerial team taking office next week, this is a real opportunity to put social care at the heart of the Government’s renewed direction. Supporting the care workforce should be an immediate priority for the incoming administration – and that means fully funded interim pay uplifts ahead of the first Fair Pay Agreement in April 2028.

“That agreement has to be backed by sustainable, long-term funding that covers the full cost to employers. Crucially, government and commissioners need to make sure this money actually reaches providers, in full and on time – otherwise it won’t deliver for the workforce, and it’ll pile more pressure onto services that are already stretched.”