Adult Social Care Reform: Government Confirms Timetable For First Fair Pay Agreement

Insight by: Elizabeth Judson

As Andy Burnham invites leaders of the Conservatives and the Liberal Democrats for talks on reforming social care in England, the government also sets out a timeframe for the new Adult Social Care Negotiating Body, published under the Starmer Labour government.

The government has confirmed that it will proceed with the creation of a new Adult Social Care Negotiating Body (SCNB) in England, which will oversee the first sector-wide Fair Pay Agreement (FPA) for adult social care workers. The reforms are enabled by the Employment Rights Act 2025 (ERA 2025).

The need for change in the social care sector

As stated in the government Factsheet on SCNBs and FPAs, demand for adult social care services and for more skilled and committed social care workers is expected to grow in the future due to the UK population ageing.

The National Minimum Wage and National Living Wage apply to almost all workers in adult social care. The sector is traditionally low paid, and evidence suggests that low wages, combined with poor terms and conditions, contribute to recruitment and retention challenges. As a result, adult social care continues to experience high staff turnover. The government is introducing SCNBs and FPAs to empower workers, employers and other sector representatives to negotiate pay and terms and conditions. This is expected to help address the recruitment and retention crisis and support the continued delivery of high-quality care.

What will the Adult Social Care Negotiating Body do?

The government has published its response to the consultation on the process for introducing FPAs in adult social care, confirming that it intends to proceed broadly as proposed.

The SCNB will be an advisory non-departmental public body which provides independent expert advice, bringing together employer and worker representatives to negotiate legally enforceable minimum standards.

The government has signalled that the first negotiation cycle will focus primarily on:

  • Pay levels
  • Pay structures
  • Core terms and conditions

Broader issues such as training, wellbeing and career progression are within scope but may be more prominent in later negotiation rounds.

How will the Adult Social Care Negotiating Body work?

The sections below explain how the SCNB will be structured, who will be represented, which workers will be covered, and how negotiations will take place.

Worker and employer representation

Regulations will require an equal number of seats for worker and employer representatives.

Worker representatives will be coordinated by the Trades Union Congress (TUC) through a trade union group consisting of:

  • UNISON
  • GMB
  • Unite
  • Royal College of Nursing

These organisations will nominate worker representatives to the SCNB.

Employer representatives will be coordinated by the Care Provider Alliance (CPA). The government says membership should reflect the size, type and diversity of the care provider market.

Local government

Whilst local government will not have voting rights on final agreements, their interests will be represented with a clear process of engagement, and the opportunity to provide evidence on affordability and deliverability.

Who is covered?

The government has decided that the SCNB will cover most adult social care workers in England, including workers in independent sector care settings.

However, the following groups will initially be excluded:

  • Self-employed care workers
  • Workers providing informal care
  • Workers already covered by other national bargaining systems, including:
    • NHS staff on Agenda for Change contracts
    • Local authority staff covered by the National Joint Council arrangements

The exclusion of NHS and local authority care workers will be reviewed after three years.

How will negotiations work?

Each year the Secretary of State will issue a remit letter setting:

  • Government priority areas
  • Matters to be negotiated
  • The maximum funding envelope
  • Timelines for negotiations
  • Affordability considerations
  • Issues affecting local government, NHS commissioners and self-funders

Negotiations will then be conducted by the SCNB. If agreement is reached, it will be submitted to the Secretary of State for approval and ratification. If negotiations fail, Acas may be brought in to assist. The Secretary of State will retain reserve powers to determine matters necessary for implementation.

When will the first Fair Pay Agreement be introduced?

The government has set out the following timeframe for the new SCNB to deliver the first FPA for social care workers in England.

Regulations establishing the SCNBDuring 2026
SCNB establishedBy the end of 2026
Independent chair appointedEarly 2027
First negotiation round beginsApril 2027
Negotiations expected to lastApproximately six months
First FPA introducedApril 2028
Funding allocated for first agreement£500 million for 2028/29
First agreement expected to operate2028/29 financial year

The Care Workforce Pathway

Alongside these measures, the government is expanding the Care Workforce Pathway, which is described as the first universal career structure for adult social care. The pathway is intended to set out clearer responsibilities, development routes and progression opportunities.

Progress for social care, but important questions remain

The introduction of SCNB marks a significant step towards sector-wide bargaining in adult social care in England. While the proposals have been broadly welcomed by unions and employer groups, important questions remain about whether the funding available will be sufficient, how far it will reach frontline workers, and what impact the reforms will have on local government and providers.

The success of the first FPA will ultimately depend on whether the new arrangements can deliver meaningful improvements to pay and terms and conditions while supporting recruitment, retention and the long-term sustainability of the sector.

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Elizabeth Judson | Head of Platform Experience