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UK Commits £500 Million to First Fair Pay Agreement for Care Workers

Regulations to set up a negotiating body are scheduled for 2026 with the first deal planned to take effect in 2028.

Overview

  • The government opened a consultation on the framework, intended to be underpinned in law via the Employment Rights Bill.
  • A new Adult Social Care Negotiating Body would bring employers and trade unions together to set pay and conditions across England.
  • Ministers plan to establish the body by regulation in 2026, hold negotiations in 2027, and bring the first agreement into force in 2028.
  • The £500 million comes from a larger £4 billion uplift earmarked for adult social care in 2028–29 rather than immediate spending.
  • Unions called the move a welcome start, while provider groups warned the sum may deliver only about 15–20p an hour without wider commissioning reform.