Social care Fair Pay Agreements 

In a move a set to bring sector-wide negotiations on pay and working conditions for the first time, the government has announced plans to introduce Fair Pay Agreements (FPAs) through the upcoming Employment Rights Bill.

Why is this happening?

Social care plays a vital role in our communities, employing over 1.59 million people in England alone. But despite the essential nature of the work, the sector has long faced challenges such as low pay, high turnover, recruitment pressures and limited bargaining power.

These factors contribute to ongoing recruitment and retention difficulties, which in turn put pressure on care services.

And with demand for social care predicted to rise sharply as the UK’s population ages (the over-85 population alone is expected to grow  by 1.4 million by 2045), change is essential.

What will Fair Pay Agreements do?

FPAs are a form of sectoral collective bargaining. They’ll bring together employers, worker representatives (including trade unions), and other stakeholders to negotiate on pay and other employment terms.

The powers in the Employment Rights Bill will allow governments to:

• Set up a Social Care Negotiating Body for each nation.
• Appoint members and define the body’s remit.
• Specify the negotiation process, including how disputes will be resolved.
• Ratify agreements so that the terms become legally binding across the sector.

How will it work in practice?

The Department of Health and Social Care (DHSC) has already begun engaging with sector representatives through a Fair Pay Agreement working group, alongside specialist task groups. Their input will shape a public consultation later this year, after the Bill receives Royal Assent.

Once the negotiation bodies are established, they’ll work to agree the first FPA. The government aims for the first agreement for adult social care in England to take effect within this parliament.

FPAs represent a major step towards tackling the pay and retention crisis in social care. By giving workers and employers a stronger voice in setting sector-wide pay and conditions, the government hopes to build a more stable and sustainable workforce for the future.

What happens next?

• 2025 – Employment Rights Bill expected to receive Royal Assent.
• Post-Royal Assent – public consultation on the FPA process.
• Secondary legislation – to establish the negotiating bodies.
• First agreements negotiated – aiming for implementation before the end of the current Parliament.