Labour Announces Pay Boost and New Negotiating Body to Address England’s Care Sector Crisis

Published: 30 September ‘2025. The English Chronicle Desk

The Labour government has unveiled plans to tackle the deepening crisis in England’s care sector by introducing a significant pay increase for care workers from 2028 and establishing a pioneering body that will bring together trade unions and employers to negotiate fair wages and improved working conditions.

Health Secretary Wes Streeting confirmed that £500 million will be allocated to support the initial pay rise, while the groundwork for the new negotiating body will begin this year. The initiative aims to create a structured framework for fair pay agreements and better employment terms, addressing long-standing issues of low wages and job insecurity that have driven many workers away from the sector.

The negotiations conducted by the new body will determine the final pay enhancements, which are intended to apply across both public and private care providers. However, unions have warned that the proposed investment will need to be substantially higher to adequately meet the needs of the workforce. Care workers are unlikely to see immediate benefits, as the employment bill must first pass through Parliament, followed by consultations for the new negotiating body next year. The actual negotiations are expected in 2027, with pay and conditions improvements set to take effect from 2028.

The initiative comes amid growing concern over workforce shortages in social care, where vacancy rates are approaching 10 percent and are projected to rise further due to tighter visa controls on overseas workers. By improving pay and working conditions, the government hopes to enhance retention and make the sector a more attractive career option.

Both employers and union representatives will sit on the new body, which will have the authority to set sector-wide recommendations. The funding for this initiative will be drawn from the £4 billion allocated to adult social care in the most recent spending review. Streeting is expected to emphasize at the Labour conference that the government will no longer tolerate a system based on low pay and precarious employment, pledging that the fair pay agreement will be legally supported.

Unison General Secretary Christina McAnea welcomed the move, calling it the first serious government action to address longstanding challenges in social care. She stressed that while the £500 million initial funding is a positive step, additional resources will be required to achieve the full vision of a national care service. McAnea highlighted that increasing funding behind the fair pay agreement is essential to rapidly raise wages and address the staffing crisis in the sector.

Streeting is also expected to reaffirm plans for a national care service, a long-term project designed to standardize and improve care provision across England. The government has faced criticism for the slow pace of reform, with Lady Casey, a respected Whitehall official, commissioned to outline a plan to implement the service over the next decade.

The Health Secretary will also pay tribute to former Deputy Prime Minister Angela Rayner, who recently stepped down, recognizing her pivotal role in developing the fair pay agreement. Streeting praised Rayner’s understanding of care workers’ struggles, noting that her personal experience in the sector informed the design of the agreement and underscored the government’s commitment to meaningful reform.