Labour to tackle care sector crisis in England with pay increase and new negotiating body

"Care workers in England are to receive a substantial pay increase from 2028 after the creation of a new body of trade unions and employers designed to stem the exodus of workers from the sector by improving wages and conditions. The health secretary, Wes Streeting, will put 500m behind the initial increase and will begin this year to establish the new negotiating body, which will create a fair pay agreement. However, unions have warned that the future pay increases will need substantially more investment."

"The move was promised as part of a slew of measures in Labour's workers' rights package, intended to create better pay and working conditions in the struggling care sector, where low pay and insecure work have led to a recruitment crisis. The final increase will be negotiated by the body the first of its kind in the country with the budget set by government also used to improve conditions at work."

The government will establish a new negotiating body of trade unions and employers to set a fair pay agreement for care workers, with improvements due from 2028. An initial £500m from the adult social care budget will support the first increase, with the body formally convened after a consultation and the employment bill passes. Negotiations will take place in 2027 so pay and conditions can take effect in 2028. Recommendations will apply across private and public sectors, and both employers and unions will participate. Unions warn that further funding will be required to achieve meaningful pay rises and retention.

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