A consultation was held between 30 September 2025 and 06 March 2026 on the design of the fair pay agreement process for workers in the social care sector in England. A July 2026 UK Government response confirms the intention to proceed on the enforcement of minimum employment standards.
Fulfilling a Manifesto priority for the UK Government, they consulted in September 2025 on the establishment of a new ‘Adult Social Care (ASC) Negotiating Body’. This will bring together trade unions and employer representatives to negotiate on pay, terms and conditions, including the creation of fair pay agreements for workers in the adult social care sector in England.
This is all part of the Plan for Change and Plan to Make Work Pay, legislated by the Employment Rights Act 2025 (Chapter 2 which details those workers in scope):
- In England, this will extend to an individual who is employed wholly or mainly in, or in connection with, the provision of social care to individuals aged 18 or over;
- In Scotland and Wales, this will extend to an individual who is employed wholly or mainly in, or in connection with, the provision of social care to any individual
In this regard, it is worth noting that whilst future legislation will apply Great Britain-wide, Scotland and Wales will have separate negotiating bodies and therefore different Fair Pay Agreements.
The UK Government has published its response, in which it confirms the ACS Negotiating Body will be established as planned. Regulations will be published later this year, with negotiations expected to begin during 2027. The first Fair Pay Agreement is anticipated to take effect in 2028/29.
For Bookkeepers
Clients should note that Fair Pay Agreements will be enforceable in workers’ contracts with non-compliance under the remit of the Fair Work Agency (FWA). Therefore, failure to pay at the statutory rate will be subject to their compliance regime.