The government has today (30 September 2025) announced a landmark £500 million investment to establish the first-ever Fair Pay Agreement for adult social care workers in England — a major milestone in delivering fair pay and improved conditions for a workforce that has long been undervalued.
A new Adult Social Care Negotiating Body will be created, bringing together employers and trade unions to negotiate pay, terms and conditions across the sector. Supported by new legislation, this body will ensure that care workers have a collective voice in shaping their pay and working environment.
The agreement will be backed by law through the Employment Rights Bill, currently progressing through Parliament, empowering employers and unions to reach binding agreements on pay and conditions.
A public consultation has been launched today to seek views on how the Fair Pay Agreement should be designed and implemented. Following consultation, the government aims to establish the new negotiating body in 2026, begin formal negotiations in 2027, and bring the first Fair Pay Agreement into force in 2028.
By 2028, care workers are expected to see a meaningful boost to their annual wages, as part of wider efforts to improve recruitment and retention in a sector critical to communities across the country.
This landmark initiative follows sustained campaigning by care workers and trade unions for a fairer deal. It builds on wider government reforms to ensure a career in care is properly rewarded and respected — including a universal career framework, funding for training and qualifications, and recognition of the complex, skilled work performed by care professionals.
The £500 million investment forms part of an overall increase of over £4 billion in additional funding for adult social care by 2028–29, compared with 2025–26. This follows the government’s Spending Review settlement, which also delivered a 2.6% real-terms annual increase in local government spending power and £3.4 billion in new grant funding for local services.
The government has already taken steps to support the sector, including a £2,000 uplift in the Carers’ Allowance, an expansion of the Disabled Facilities Grant to deliver 15,000 more home adaptations, and an increase in the National Living Wage by 6.7% to £12.21 per hour this April — benefitting around 3 million of the lowest-paid workers.
Secretary of State for Health and Social Care Wes Streeting said:
“For too long, care workers have been undervalued and underpaid for the vital work they do. Today marks a historic step in changing that. This £500 million investment will help deliver the first-ever Fair Pay Agreement for care workers — improving pay, raising standards and giving staff the respect they deserve.”
The Fair Pay Agreement also lays the foundation for a long-term transformation of the sector. It complements the work of Baroness Louise Casey’s independent commission into adult social care, which is building cross-party consensus to inform the creation of a future National Care Service.
Together with the new Fair Work Agency, the Adult Social Care Negotiating Body will help tackle exploitation, ensure employers meet statutory duties, and strengthen enforcement within the sector.
This announcement represents not only a pay rise for thousands of care workers, but a lasting shift towards fairness, dignity and professional recognition for those who care for the nation’s most vulnerable.
Source: Department of Health and Social Care
