Millions of social care workers in England are set to receive annual pay increases akin to those in the National Health Service, under a new fair pay agreement. The initiative aims to bring the wages of approximately 1.5 million care workers more in line with NHS staff, who currently earn an average of £7,000 more per year for comparable roles.
A newly established Adult Social Care Negotiating Body, comprising trade unions and employers, will be responsible for negotiating pay rates, terms, and conditions. This body is expected to be in place by the end of the year and will have the authority to set statutory pay rates for all staff in the care sector, irrespective of whether they are employed by local authorities or private companies.
Care Minister Stephen Kinnock stated that the plans represent a step towards a National Care Service, a concept previously proposed by Andy Burnham. He emphasized the vital contribution of care workers, noting that they "deserve much better than they've had." While acknowledging that achieving pay parity with NHS staff will be a gradual process, Kinnock expressed a commitment to developing a National Care Service that operates collaboratively with the NHS.
The average hourly wage for a care worker in England currently stands at £12.60, equating to an annual salary of £24,000 to £25,000. The cost of adult social care constitutes 19 percent of local authorities' budgets, with children's social care accounting for 11 percent. In 2024/25, local authorities spent £34.5 billion on social care, a 4.1 percent increase from the previous year, according to the King's Fund think tank.
Concerns over poor pay in the sector have been linked to staffing shortages and high turnover, which have impacted the quality of service. The new agreement could potentially lead to increased fees for private care providers.
The Adult Social Care Negotiating Body will include voting rights for care providers and workers, via their unions, on key employment matters, including pay and conditions. An independent chair will be appointed in early 2027 to oversee negotiations, with the first round of discussions scheduled for April 2027. The initial agreed pay rates are anticipated to be implemented by April 2028.
Paul Nowak, general secretary of the Trades Union Congress, welcomed the agreement, stating that care workers have been "undervalued and underpaid for their vital work." He believes the Fair Pay Agreement will help establish a higher baseline for pay and conditions within the sector.
However, the move also carries the risk of triggering further strikes. Annual pay deals have led to industrial action by NHS staff in recent years, including doctors, nurses, and ambulance crews.