Healthcare providers, care businesses and investors should begin preparing for the long-term implications of sector-wide collective bargaining after the UK government confirmed how a new fair pay agreement (FPA) for adult social care in England will operate.
In response to a consultation on the design of the FPA process, the Department of Health and Social Care confirmed that an independent adult social care negotiating body will be established to negotiate legally binding minimum standards on pay, terms and conditions across the sector. The body will also have the ability to negotiate wider workforce issues, including training, career progression, people policies and employee benefits.
The development marks the next stage in implementing reforms enabled by the Employment Rights Act 2025 and follows proposals first outlined by the government last year. The first round of negotiations is expected to begin in 2027, with the first agreement taking effect from April 2028. The government has also confirmed a 500 million funding envelope for the first year of the agreement.
While the FPA will apply only to adult social care workers and exclude staff already covered by NHS and local government pay-setting arrangements, the reforms are expected to have implications across the wider health and care economy.
Anthony Hollands, employment law expert at Pinsent Masons, said: “Healthcare organisations, care providers and independent sector operators frequently compete for similar...
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