What is the Fair Pay Agreement?
A Fair Pay Agreement (FPA) is a legally binding framework through which employers and trade unions negotiate pay, terms and conditions for a sector-wide workforce.
For adult social care, this will be the first time that pay and conditions are set collectively at a national level, providing:
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Greater consistency in wages and terms across providers.
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Stronger worker voice through recognised negotiations.
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Improved recruitment and retention by making care a more attractive and sustainable career.
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A foundation for seeing social care work as a profession, not just a job.
The FPA will be backed in law by the Employment Rights Bill, currently progressing through Parliament.
Government Investment
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£500 million has been allocated to fund the establishment of the agreement.
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This investment forms part of a wider package of reforms, including:
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A £2,000 uplift in the Carer’s Allowance.
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Expansion of the Disabled Facilities Grant to deliver 15,000 more home adaptations.
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Increased funding for training and qualifications, supporting a universal career structure.
Timeline
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30 September 2025 – Announcement of the FPA and launch of consultation.
- 16th January 2026 – Consultation period closes (responses via the “easy read” survey format can be submitted until 6th March 2026).
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2026 – Legislation to establish the Adult Social Care Negotiating Body.
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2027 – Negotiations on the first agreement to take place.
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2028 – First Fair Pay Agreement expected to come into force.
Why it Matters for Providers
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Pay and conditions will no longer be set solely at organisational level; providers will need to comply with nationally negotiated standards.
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The FPA is intended to stabilise the workforce, reducing high vacancy and turnover rates.
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It will provide opportunities to feed into the process through consultation and representation on the negotiating body.
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It is vital that providers’ voices are heard to ensure the agreement is practical, affordable and delivers benefits for both employers and staff.
Have Your Say
The Government has launched its FPA consultation process.
It is essential that providers’ voices are represented. Use the links below to access the consultation response forms and supporting documents.
Consultation Deadlines:
Further Information
Government Press Release – £500 million for first ever Fair Pay Agreement