The Fair Pay Agreement

The Fair Pay Agreement (FPA) sets a legally enforceable minimum floor of pay and core conditions across a sector via negotiations between employer bodies and trade unions, then extended to all employers in scope. These standards will be negotiated through a new Adult Social Care Negotiating Body, bringing together employer representatives and trade unions before being implemented across the sector.

What impact will it have?

This agreement is expected to support the living standards of the social care workforce and to improve the retention of workers for care service providers. This intervention will ensure that people can access quality care, which has many positive social outcomes, including reduced pressure on the NHS. The FPA policy may also support wider government objectives, including increasing productivity and reducing economic inactivity and overseas recruitment reliance.

How will it be funded?

The Government has confirmed £500 million to support the implementation of the first Fair Pay Agreement in 2028/29, as part of the wider £4 billion investment in adult social care announced in the Spending Review.

Latest developments

The Government has published its response to the consultation on the Fair Pay Agreement process for adult social care and confirmed the next phase of implementation. It has been confirmed that a new Adult Social Care Negotiating Body will be established by the end of 2026. The body will bring together employer representatives and trade unions to negotiate pay, terms and conditions for the adult social care workforce. The first negotiations are expected to begin in April 2027, with the first Fair Pay Agreement due to come into effect from April 2028. Employers will have voting rights alongside worker representatives, with an independent chair overseeing the negotiations.

The Association will continue to keep members updated as further details are announced.

You can also learn more about the Fair Pay Agreement on LinkedIn / Facebook.

As a member of the Care Provider Alliance, we are also pleased to support the Fair Pay Agreement Community of Practice (CoP) - a space designed to strengthen information sharing, sector engagement, and peer learning across social care. The CoP brings providers together to stay informed about Fair Pay Agreement developments, share challenges and insights, and learn from one another as the policy landscape evolves.