News Story

DHSC announces next steps towards Fair Pay Agreement for adult social care

July 16, 2026

The Government has announced the next steps towards introducing the first-ever Fair Pay Agreement for adult social care in England, alongside an expanded Care Workforce Pathway.

Under the plans, a new Adult Social Care Negotiating Body will bring together employers and trade unions to negotiate pay, terms and conditions for the sector, with the first agreement expected to come into effect from April 2028. The Government has committed £500 million to support the first agreement and says the reforms will help recruit and retain care workers while supporting its ambition to create a National Care Service.

Responding to the announcement, CSA Co-Chairs Emily Holzhausen and Jackie O’Sullivan said:

“We welcome this as an important step towards giving care workers the recognition, voice and reward they deserve. For too long, the people who keep our care system going have been undervalued despite carrying out highly skilled and vital work.

“But a Fair Pay Agreement will only succeed if it is properly funded. Care providers and councils cannot be expected to absorb the cost of higher pay without risking fewer services for the people who rely on them. While the government’s £500 million commitment is welcome, spread across a workforce of 1.5 million people it is equivalent to around 17p an hour for a full-time care worker. Nor should the costs simply be passed on to people who fund their own care and their families, particularly when the government’s own assessment suggests they are likely to be disproportionately affected. Many are already grappling with rising fees driven by increases in the National Minimum Wage, employers’ National Insurance contributions, inflation and higher energy and food costs.

“Today’s announcement must also be part of something bigger. Better pay alone will not fix a system where too many older people, disabled people and unpaid carers still cannot get the care and support they need.

“With Baroness Casey’s Commission underway and a new Prime Minister in office, there is a genuine opportunity to build on today’s announcement as part of the wider reform our care system so urgently needs. We look forward to working with government to ensure workforce reforms are matched by the long-term changes needed to create a care and support system that is sustainable, properly funded and delivers high-quality support for everyone who needs it.”