Fair Pay Agreement - Consultation Process is now open and Government announces £500m in funding towards it.
The Government today announced the start of the public consultation process for the Social Care Fair Pay Agreememt, along with £500m towards funding it
The Fair Pay Agreement was the Government's major manifesto promise and it is now gaining momentum.
The West Midlands Care Association is supportive in priciple of a Fair Pay Agreement for Social Care staff as long as it is adequately funded by central government.
Todays announcement of £500m in funding is a welcome step in the right direction, but we remain sceptical that this will be adequate.
We urge all of our members to engage with the consultation process which is now open as this piece of legislation promises to have a profound impact on care providers. The outcomes of this consultation will help DHSC to understand sector views on a range of areas including:
- the Adult Social Care Negotiating Body
- the negotiating process
- coverage and remit
- dispute resolution
- implementation
- compliance and enforcement
It should be pointed out that the consultation will not set the minimum pay rate for social care staff. That will be decided by the Negotiating Body and then presented to government for final sign off. As the negotiating body will respresent the voice of care providers it is important that you have your say.
The full draft of the Government Press Release can be seen below
Keiron Broadbent
Chief Executive Officer
West Midlands Care Association
Government Press Release
The government today announces a major step in boosting the wages of adult social care workers across England, as a £500 million investment is announced into the first ever fair pay agreement.
A new body to negotiate changes to pay and terms and conditions for care workers will be set up including both employers and trade unions.
The body will aim to improve recruitment and retention, giving staff better recognition for their important work and this initial investment will mean that by 2028, care workers will expect to see a boost in their yearly wages.
The cash injection follows the government’s immediate actions to boost the social care sector, including a £2,000 uplift in the Carers’ Allowance and an increase in the Disabled Facilities Grant to provide 15,000 more home adaptations.
A public consultation to gather views on the design of the fair pay agreement process has also been launched today (30 September 2025) by government.
Following this, the Adult Social Care Negotiating Body will be established through regulations in 2026, with the first fair pay agreement coming into force in 2028.
It is supported by other government reforms that will ensure a career in adult social care is respected and rewarded - by backing progression through a universal career structure, funding training and qualifications, and recognising the complex skills care workers bring - so working in care is seen as a profession, not just a job.
Not only will this improve recruitment, but this important first step between workers and employers in the sector will also ensure the delivery of high-quality care, as the government makes headway on its mission to build an NHS that’s fit for the future.
As well as putting more money in pockets for care workers, it is a down payment on higher wages for the future, as establishing collective bargaining in this critical sector means that the workers will have a strong voice for years to come.
The fair pay agreement will be backed by law currently progressing in Parliament through the Employment Rights Bill, and will empower employers and unions to negotiate better terms and conditions.
Baroness Louise Casey is working on the independent commission into adult social care to build cross-party consensus and deliver recommendations on the government commitment to create a national care service.
Today’s announcement follows the Spending Review settlement which saw a 2.6% real terms average annual increase in local government core spending power over the Spending Review period, including £3.4 billion of new grant funding for vital local services. This £500 million forms part of an increase of over £4 billion of additional funding available for adult social care in 2028 to 2029, compared with 2025 to 2026.
The government has also taken steps to boost wages for the lowest paid workers including care workers, with the National Living Wage increasing by 6.7% to £12.21 this April. This increase is expected to benefit around 3 million low paid workers. This represents an increase of £1,400 to the gross annual earnings of a full-time worker on the National Living Wage.
Background information
The confirmed £500 million funding today has been newly allocated from the £4 billion increase in funding available for adult social care in 2028 to 2029 that the Chancellor announced in the Spending Review.
As well as delivering a better deal for care workers, the Adult Social Care Negotiating Body and new Fair Work Agency will work together to crack down on any exploitation occurring within the sector, through helping employers understand statutory duties and implementing effective enforcement.
Following the public consultation, the government aims to lay secondary legislation and stand up the new negotiating body in 2026. They will conduct negotiations in 2027 with enough time to prepare the sector for implementation ahead of 2028 to 2029.
Share
