The Fair Pay Agreement explained: what care workers and employers need to know

For the first time, care workers in England will have their minimum pay and conditions set by a national agreement. The Fair Pay Agreement is the biggest change to how the sector is paid in a generation, and it is closer than many people realise. The first settlement is expected to take effect in April 2028, with negotiations starting in 2027.

This article covers what we know, what is still open, and what it means for you.

What is a Fair Pay Agreement?

It is a sector-wide deal on pay and terms. Trade unions representing workers sit down with representatives of employers and agree minimum standards that apply across adult social care. The government announced it in September 2025, backed by £500 million for 2028–29 as part of a wider rise in social care funding.

The legal basis is the Employment Rights Act 2025, which lets the Secretary of State set out the process in secondary legislation. The Department of Health and Social Care published its consultation response on 16 July 2026.

Who negotiates?

A new Adult Social Care Negotiating Body will run the talks. It will:

• bring together employer representatives and trade unions
• work at arm's length from ministers, under an independent chair
• negotiate minimum pay, terms and conditions, training and career progression, with the first round focused mainly on pay, terms and conditions

Staff already covered by national bargaining arrangements, such as NHS Agenda for Change and local authority staff, are excluded.

The timeline

What it could mean for care workers

If you work in care, the agreement is designed to give you a fairer floor: minimum pay that reflects the skill of the job, and clearer routes to progress. About a quarter of care workers are currently paid at or near the minimum wage, and five years' experience is worth just 12p an hour more than a new starter's pay. A national agreement that links pay to training and progression could change that.

It also matters that training and career progression sit inside the agreement's scope. Qualifications and recognised skills are likely to carry more weight, not less. The Care Workforce Pathway is the best guide to how roles and skills are being described.

What it could mean for employers

For providers, the questions are practical. Will the funding reach frontline pay? How will commissioners and councils adjust their fee rates? Both were raised in the consultation and remain unresolved.

What is clear is that employers who already invest in training, structured progression and good records will be best placed. When pay is linked to role and skill, you will need to show who holds which qualifications and who does which tasks.

How to prepare now

1. Audit your training records. Know who has the Care Certificate, who holds Level 2 or 3, and who is working towards them.
2. Map roles against the Care Workforce Pathway. It is likely to inform how roles and progression are described.
3. Model your pay bill. Plan for a higher pay floor from April 2028 and raise it early with commissioners.
4. Talk to your team. Staff will have questions, and clear, early communication builds trust.
5. Watch for the chair appointment. It is the first sign of how the talks will run.