Too Little, Too Late: The Care Workers’ Charity Responds to £500 Million Funding for The Fair Pay Agreement
The Care Workers’ Charity (CWC) welcomes today’s announcement by Secretary of State for Health and Social Care, Wes Streeting, of a £500 million investment to establish the first-ever Fair Pay Agreement for adult social care workers in England.
This initiative will create a new negotiating body, bringing together employers and trade unions to address pay, terms, and conditions for a workforce that has, for too long, been undervalued and underpaid. The body is due to be established in 2026, with the first Fair Pay Agreement expected to come into effect in 2028.
While this announcement represents a step forward, £500 million is not enough to deliver the scale of change needed for care workers. The confirmed funding is newly allocated from the £4 billion increase in adult social care funding planned for 2028/29 as announced in the Spending Review.
But this timeline is far too late. Care workers are struggling today, with low pay, financial insecurity, and workforce shortages creating intense pressures across the sector.
Karolina Gerlich, CEO of The Care Workers’ Charity, said, “We welcome today’s announcement as an important recognition of the need for a Fair Pay Agreement. But £500 million is not enough to deliver real change for care workers who are undervalued and underpaid.
The fact that this funding comes from the £4 billion increase planned for 2028/29 shows just how delayed this investment will be. Care workers cannot wait until 2028. They are struggling now, with too many forced to work excessive hours just to make ends meet, and too many leaving the sector altogether.
If this is to succeed, care workers must also be directly involved in the consultation and negotiation process. They are the experts, and their voices must shape the Agreement, and we will be encouraging care workers in our network to engage directly in consultation and negotiation.
We must also be honest that this cannot be achieved by a Fair Pay Agreement alone. The government must urgently consider the funding model for adult social care. That means a national investment and a national approach to commissioning, alongside recognition that social care is an ecosystem: care workers, providers, people drawing on care, and communities are all interconnected, and reform must strengthen the system.”
The Care Workers’ Charity’s 2025 Wellbeing Survey, with over 2,000 responses, shows the reality facing the workforce:
- 72.1% of care workers said they do not feel financially secure, despite 60.7% being on full-time contracts.
- 57.4% identified low hourly pay as the single biggest contributor to financial insecurity.
These figures make clear that investment is needed immediately to address the workforce crisis. Without urgent action, workforce shortages, burnout, and financial pressures will continue to undermine the stability of the sector and the quality of care delivered.
The Care Workers’ Charity will continue to advocate for:
- A fully funded Fair Pay Agreement that delivers measurable improvements in wages and conditions, supported by immediate interim funding.
- Consistent access to wellbeing and mental health support for all care workers.
- Ongoing engagement and co-production with care workers to ensure reforms reflect the realities of care work.
Today’s announcement signals a recognition of the importance of valuing care workers – but it is not enough, and it is not soon enough. If the Government is serious about reform, it must act now to deliver fair pay and meaningful support to the workforce at the heart of our care system.