New Fair Pay Agreement Body
A new independent body will be established to negotiate changes to pay and working conditions for care workers. It will include both employers and trade unions, ensuring the workforce has a strong voice in shaping the future of the sector.
The Adult Social Care Negotiating Body will be created through regulations in 2026, with the first Fair Pay Agreement expected to come into force in 2028.
Improving Pay, Recruitment and Retention
The Government’s investment is designed to:
- Boost annual wages for care workers by 2028
- Improve recruitment and retention across the sector
- Provide staff with recognition for their vital role
- Build a career path with professional training and qualifications
This forms part of wider reforms to ensure that working in care is seen as a respected profession rather than “just a job.”
Immediate Support for Carers
The announcement follows a series of measures already introduced to strengthen social care, including:
- A £2,000 uplift in carers’ allowance
- An increase in the Disabled Facilities Grant, delivering 15,000 more home adaptations
- A 6.7% rise in the National Living Wage, raising it to £12.21 in April 2025 – boosting the annual earnings of a full-time worker on the minimum wage by around £1,400
Backed by Law and Long-Term Reform
The Fair Pay Agreement will be supported by the Employment Rights Bill, currently progressing through Parliament. This legislation will ensure that collective bargaining is legally backed, giving workers and employers a framework to secure fairer terms for years to come.
Baroness Louise Casey is also leading an independent commission into adult social care, with the aim of building cross-party consensus on the Government’s commitment to a National Care Service.
Funding Commitments
The £500 million investment is part of a wider increase of over £4 billion of additional funding for adult social care by 2028–29, compared to 2025–26. This builds on the Spending Review settlement, which included a 2.6% average annual real terms increase in local government core spending power and £3.4 billion in new grant funding for vital local services.
A Stronger Future for Care
The Government says the new agreement will not only put more money in workers’ pockets but also lay the foundations for higher wages, better conditions, and improved care quality in the long term.
By establishing collective bargaining in adult social care, the reforms aim to transform the sector into one where staff are supported, valued, and empowered and where people receive the high-quality care they deserve.
