Major milestone for care worker pay as Labour invests £500 million into first ever Fair Pay Agreement
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Health and Social Care Secretary Wes Streeting announces a major
£500m investment in Fair Pay Agreement for adult care workers
across England The first of its kind, the Agreement establishes a
new negotiating body that brings together employers and trade
unions to boost pay and conditions for a workforce that has for too
long been undervalued and underpaid Speaking at Labour Party
Conference, Streeting will say the important first step
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The Labour government today announces a major step in boosting
the wages and working conditions of adult social care
workers across England, as they announce a £500 million
investment into the first ever Fair Pay Agreement in the
sector.
The Agreement, committed to in opposition and now
being delivered by Labour in government, will see a new body
formed to negotiate changes to pay and terms and conditions
for care workers, improving recruitment and retention and giving
staff better recognition for their vital work.
Both employers and trade unions will sit on the body, and this
initial investment will mean that by 2028, care workers will
expect to see a boost in their yearly wages.
The move follows immediate changes by the Labour government to
boost the adult social care sector, including a £2,000
uplift in the carers' allowance and an increase in the Disabled
Facilities Grant to provide 15,000 more home
adaptations. The changes brought in by Labour follow 14 years of worsening conditions for adult social care workers under the damaging management of the Tories, leading to a staff turnover rate of nearly a third, a vacancy rate of nearly 10 per cent - and low pay and insecure work driving a recruitment and retention crisis in the sector. In his speech, Secretary for State for Health and Social Care Wes Streeting will say: "We will no longer accept a system built on poverty pay and zero-hour insecurity. "We will back the first-ever Fair Pay Agreement for care workers, not just in law but in practice — starting with £500 million, to deliver better pay, terms, and conditions for care workers across our country. "Because the people who care for our loved ones should never struggle to care for their own. "Let's also be clear about how this change has come about. They're sat down there. UNISON and GMB, who stood up for care workers when no one else would. "Friends, you can go back to your members and tell them with pride that this is the difference that Labour unions make in government." Speaking about Labour's commitment to bring in a National Care Service, Streeting will say: "There's someone else who made a real difference, too. Who understands the struggle care workers face because she was one. "She brought that experience to the Cabinet table as the care worker who became Deputy Prime Minister. "Angela Rayner – this achievement is yours. "And I say this to you now — and to every family, every carer, every older and disabled person watching: "So long as I hold this office, it will be the mission of this Labour government to build a National Care Service worthy of the name." The government also today launches a public consultation to gather views on the design of the Fair Pay Agreement process, which is being legislated for in the Employment Rights Bill. Following this, the government will establish an Adult Social Care Negotiating Body and its processes through regulations in 2026 – with the first Fair Pay Agreement coming into force in 2028. The cash injection is supported by other government reforms that will ensure a career in adult social care is respected and rewarded – by backing progression through a universal career structure, funding training and qualifications, and recognising the complex skills care workers bring – so working in care is seen as a profession, not just a job. This important first step between workers and employers in the sector will not only help recruitment but also ensure the delivery of high-quality care, as the government gets on with its mission to build an NHS that's fit for the future. Not only will this help to put more money in pockets for care workers, it is a down payment on making work pay in the future too, as establishing collective bargaining in this critical sector means that the workers will have a stronger voice for years to come. The Fair Pay Agreement is backed by law progressing in the Employment Rights Bill, empowering employers and unions to negotiate better terms and conditions. The Labour government is committed to creating a National Care Service and Baroness Louise Casey is working on the independent commission into adult social care to build cross-party consensus and deliver recommendations to achieve this. Today's announcement follows the Spending Review settlement, which saw a 2.6 per cent real terms increase in overall local government core spending power, including over £5 billion of new grant funding over the next three years for vital local services. The government has also taken steps to boost wages for the lowest paid workers including care workers, with the National Living Wage increasing by 6.7 per cent to £12.21 this April. This increase is expected to benefit around three million low paid workers. This represents an increase of £1,400 to the gross annual earnings of a full-time worker on the National Living Wage. Ends Notes:
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