Millions of social care workers in England are set to receive annual pay increases, similar to those in the National Health Service (NHS), under a new fair pay agreement. A newly established negotiating body, comprising trade unions and employers, will be responsible for negotiating pay rates, terms, and conditions for approximately 1.5 million care workers.
The government's objective is to bring the wages of social care staff more in line with NHS employees, who currently earn an average of £7,000 more per year for comparable roles. Care minister Stephen Kinnock described the initiative as a step towards a National Care Service, a concept previously proposed by Andy Burnham.
The Adult Social Care Negotiating Body is expected to be operational by the end of the current year. This body will possess the authority to establish statutory pay rates for all staff within the care sector, irrespective of whether they are employed by local authorities or private companies.
The Royal College of Nursing has voiced support for this development, noting that nurses and other social care professionals have historically faced challenges in securing fair pay due to a lack of collective bargaining structures. The implementation of annual pay deals has previously led to industrial action among NHS staff, including doctors, nurses, and ambulance crews.
Kinnock emphasized the vital contribution of care workers to society and stated that they "deserve much better than they've had." While acknowledging that achieving pay parity with NHS staff will take time, he expressed a commitment to building a National Care Service that operates in conjunction with the NHS.
Currently, the average pay for a care worker in England is approximately £12.60 per hour, equating to an annual salary of £24,000 to £25,000. 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 low pay in the sector have been linked to staffing shortages and high staff turnover, which in turn have affected the quality of service. The proposed wage increases could potentially lead to higher fees in the private sector.
Care providers and workers will have voting rights on key employment matters, including pay and conditions, through a regular negotiation process. An independent chair will be appointed in early 2027 to oversee these negotiations. The first round of negotiations is scheduled to commence in April 2027, with the first agreed pay rates expected to be implemented by April 2028.
Paul Nowak, general secretary of the Trades Union Congress, stated that care workers have been "undervalued and underpaid for their vital work" and that the Fair Pay Agreement is intended to "help lift the floor of pay and conditions in the sector."