The UK Government’s announcement of a £500 million investment to establish the first-ever Fair Pay Agreement (FPA) for adult social care workers has sparked both hope and concern across the sector. While many welcome the recognition of care work as a skilled profession deserving of fair reward, others argue the funding falls short of what’s needed to make a meaningful impact.
What is the Fair Pay Agreement?
The FPA is part of the Employment Rights Bill, currently progressing through Parliament. It will create a legally binding framework for negotiating minimum standards in pay and conditions across the adult social care sector. A new Adult Social Care Negotiating Body, comprising employers and trade unions, will be established in 2026, with the first agreement expected to come into force in 2028.
The Fair Pay Agreement is designed to address chronic issues in recruitment and retention. Vacancy rates in adult social care remain three times higher than the wider economy and pay progression is minimal with experienced care workers earn just 4p more per hour than newcomers.
Government’s Position
Health and Social Care Secretary Wes Streeting stated:
“We will no longer accept a system based on poverty pay and zero-hour insecurity. The people who care for our loved ones should never have to struggle to care for their own.”
The government sees the £500 million as a “down payment” on higher wages and part of a broader reform to build a National Care Service, including career progression, training, and professional recognition.
Sector Response: Applause with Caution
While the initiative has been broadly welcomed, many leaders have voiced concerns about the adequacy of the funding.
Professor Martin Green, Chief Executive of Care England, remarked:
“While the creation of a fair pay agreement represents a long-awaited acknowledgement that care work is a skilled profession deserving of fair reward, today’s announcement does little to deliver any meaningful change for our workforce.”
Christina McAnea, General Secretary of UNISON, added:
“The funding announced is a start, but substantially more will be needed to deliver the national care service the public deserves.”
Jess McGregor, President of the Association of Directors of Adult Social Services, warned:
“Costs relating to the FPA need to be funded centrally by government, and not by councils who are already under immense financial strain.”
The Numbers Behind the Headlines
According to the Health Foundation, if the £500 million were spent solely on pay and divided evenly among England’s 1.6 million care workers, it would equate to just 20p extra per hour. To match NHS Band 3 pay levels, an estimated £2.3 billion would be needed.
Looking Ahead and Having Your Say
The public consultation on the Fair Pay Agreement process is now open, closing on 16 January 2026. This is a critical opportunity for providers, workers and local authorities to shape the future of pay and conditions in social care.
As Dr Rhidian Hughes, Chief Executive of VODG, noted:
“Without sufficient funding to ensure local authorities can cover the full costs of the workforce, we will continue to be caught in a loop of increasing costs without the funding needed to cover them.”
Mark Topps, Co-Founder of The Caring View said
“The Fair Pay Agreement could be a transformative moment for social care staff but only if it’s backed by real investment and long-term commitment. We have a consultation period, and as a sector we must speak with a unified voice to ensure this policy delivers for our workforce.
You can read more about the Fair Pay Agreement here
