Fair pay agreement consultation
Employers can respond to the government's fair pay agreement (FPA) proposal which would set legally enforceable minimum standards for pay and terms and conditions in adult social care to tackle low pay, poor conditions and retention issues.
The consultation covers:
- who and what should be in scope of negotiations
- how the negotiation process could work, including:
- who is involved
- how disputes are resolved
- how the agreement could be implemented and complied with.
This consultation is part of government plans to plan to Make Work Pay and the intention is that a new adult social care negotiating body will bring together trade unions and employer representatives to agree these standards.
Have your say on the proposals
Although NHS Employers are not responding on behalf of employers, you may wish to respond individually or on behalf of your trust.
You can read and respond to the consultation on the gov.uk website. The closing date for responses is 11:59pm on Friday 16 January 2026.
Key areas of impact
1. Scope
- Applies to most adult social care workers in England, including agency staff.
- Excludes self-employed and informal carers.
- The consultation seeks views on whether local authority and NHS-employed staff should be included.
2. Negotiation process
- Annual cycles triggered by the Secretary of State.
- Covers pay, terms, and possibly wider issues (training, wellbeing).
- Dispute resolution via Acas.
3. Compliance
- Agreements will be legally binding and enforced by a new Fair Work Agency.
- Non-compliance could lead to penalties similar to National Minimum Wage enforcement.
4. Funding
- £500m earmarked for pay and conditions improvements as part of a £4bn uplift by 2028/29.
- Negotiations will operate within a defined cost envelope.
Implications for employers
- Likely increased costs for providers and councils.
- Need to plan for contract fee adjustments, workforce budgeting, and compliance processes.
- Potential benefits include improved recruitment, retention, and service quality.
Further information
- Read the July 2025 update on the employment rights bill which includes a roadmap and actions for employers.
