Most people would agree that care workers in this country are worth their weight in gold – delivering care and support that is vital to society, that many vulnerable individuals and families would struggle to survive without. However, for too long now, care workers have been undervalued.

The Government’s draft proposals for a Fair Pay Agreement (FPA) for workers in the sector have been welcomed by providers, workers and representative bodies as a positive recognition of the need for change. However, without realistic funding, inclusive representation and an honest evaluation of current inequalities, the proposed FPA simply won’t work.

First, funding

As with any fair pay initiative, nothing can be achieved without funding.  The Government has allocated £500m to support the first FPA; however, there is no independent evidence to suggest that this sum is sufficient to ensure ‘fair’ pay.

We included some calculations in our recent consultation response to demonstrate how inadequate this funding package really is. Here goes – we know that 77% of the adult social care workforce is publicly funded, and based on workforce numbers, the £500m set aside to fund the first FPA equates to roughly £393 per full-time worker per year – that’s about 20p per hour. This is nowhere near enough to deliver a pay floor at Real Living Wage levels, let alone career-appropriate differentials.

A sensible starting point for any FPA must be an independent assessment of the true cost of delivering high-quality care in different settings and the funding needed to deliver fair pay. To address this, the Government should consider appointing a body such as the Institute of Fiscal Studies.

Realistic representation 

As only about 15% of the care workforce are signed up members of a trade union or employer umbrella body, it is clear that wider worker representation is needed. To address this lack of representation, the Government should involve organisations such as the Care Workers’ Charity, NACAS, and most crucially, frontline workers themselves.

It is also important that local government, the NHS, and the HM Treasury are involved in fair pay negotiations. Local government and the NHS are responsible for the commissioning of most social care and without their support, sustainable change can’t be delivered. 

Avoiding a two-tier system

Fair pay should mean fair pay for all adult care workers, regardless of the setting. As proposed currently, any future FPA would only apply to private and voluntary sector workers, excluding local authority staff. This is because the Government consider it would be too costly to equalise terms.  As a result, the FPA will inevitably lead to a two-tier system of pay, which is inherently unfair.  This directly contradicts the core purpose of the FPA and provisions in the Employment Rights Act 2025, which commit to eliminating two-tier working practices. 

If funding is insufficient to bring local authority and independent sector remuneration into parity, then the Government should be open and honest about this, rather than seeking to claim a commitment to ‘fair pay’ whilst pursuing a model that embeds inequality. 

Prioritising sustainable structures

For real change to be felt across the care sector, establishing a pay floor, at or above the Real Living Wage, must be prioritised. Clear pay bands are also needed to protect differentials and promote progression. 

Ensuring equality

A workforce predominantly made up of women, and with 32% of workers from black, Asian or other ethnic backgrounds, a well-funded FPA could support gender and racial pay equality. 

If demands for funding are not adequately met, costs risk being passed onto self-funders. This would be unfair and disadvantageous to many vulnerable individuals and their families, who rely on these much-needed services.

When will this happen?

The new negotiating body is due to be established in October 2026, and the first FPA is expected in 2028. For any agreement to be sustainable, providers will need plenty of time to prepare. Whilst the current proposal suggests six months for negotiation and another six for implementation, this doesn’t seem very long. Allowing one year for negotiations is probably more realistic, allowing time to align commissioning budgets and workforce planning. 

The Government’s intentions are very welcome, but the current proposals fall short of what is needed to deliver fair pay for workers in the sector sustainably. A credible approach to sector pay must be built on independent costings, broad and representative participation and realistic funding. It must also be delivered in a way that avoids entrenched inequalities. Only then will care workers be assured of a fair level of pay. 

Key takeaways

• The recognition of the need for Fair Pay is an important step forward for the social care sector, but it requires funding, representation and a realistic approach.
• The £500m Government funding is a start, but not enough to ensure a fair level of pay for all adult social care workers.
• A wider approach to employee representation is needed to ensure the FPA is balanced and fit for purpose.
• A two-tier system of pay must be avoided at all costs, not least as this would go against provisions in the Employment Rights Act 2025.
• In addition to setting a fair pay floor aligned to the Real Living Wage, pay bands must be agreed for workers at different levels to allow for career progression.
• Self-funders must not be left carrying the can by meeting the cost of delivering fair pay.
• A more realistic timeline is needed to deliver the first FPA.

Please get in touch for further information and advice.