The Government has announced a £500 million investment to establish the first-ever Fair Pay Agreement for adult social care workers in England. A new negotiating body of employers and trade unions will be established in 2026, with negotiations beginning in 2027 and the first agreement expected to take effect in 2028. 

This is a significant recognition of the vital role of care workers. For the mental health workforce – which often spans both NHS-commissioned health services and local authority or VCSE-delivered social care – this announcement must ensure that their contribution is fully recognised. Recruitment and retention challenges across this workforce are long-standing, and fair pay and conditions are crucial to sustain services and safeguard support for people with mental health needs.

Dania Hanif, Interim Chief Executive of the Association of Mental Health Providers, said:

“We welcome the Government’s recognition of the value of care work through the Fair Pay Agreement and the £500 million investment. For too long, the mental health workforce – whether delivering NHS-commissioned services, community-based social care, or both – has been undervalued despite its central role in supporting over eight million people across the country.

However, headline funding alone will not be enough. Current estimates suggest this investment could mean an uplift of around 40-45p an hour for the lowest-paid care workers. While any improvement is positive, it is far from sufficient to address the structural issues in our sector – and the fact that workers will not feel the benefit until 2028 risks prolonging the crisis.

The success of a Fair Pay Agreement will depend on its design. It must recognise the dual roles of the mental health workforce, who often move between NHS-commissioned clinical services and VCSE-delivered social care provision, sometimes within the same role or service. Without parity of esteem and sustainable commissioning, these workers risk being trapped in fragmented pay systems that do not reflect the reality of their work.

Crucially, the process must ensure sustainable funding and commissioning models so that providers are not left with unfunded costs. If not, we risk service closures, worsening quality, or reduced access to mental health support – none of which are acceptable for people who rely on care and support.

As the only representative organisation for VCSE and social care mental health services – representing providers who collectively support more than eight million people – we will not only be encouraging our members to respond, but also responding on their behalf. Their experience and insight will be central to shaping a Fair Pay Agreement that uplifts the workforce, sustains providers, and secures the future of mental health care and support.”

The Association will continue to press for:

• Recognition of dual roles across NHS-commissioned services and social care provision, ensuring parity in pay and conditions
• Funding that reflects the true cost of care and support, not just wage uplifts in isolation
• Commissioning and contract reform so providers can deliver improved pay without destabilising services
• Robust negotiating infrastructure, data, and enforcement to make the agreement meaningful in practice
• Full inclusion of VCSE mental health providers, whose services are indispensable to communities across England and Wales