From ambition to reality: national policy options to improve care worker pay in England

Low pay for care workers is a key factor among the problems that beset the social care sector. The case for reform is strong, but as yet there is no national policy dedicated to improving wages in the sector. The new government has announced its ambition for a fair pay agreement and wide consultation over care sector pay. This new joint research from the Health Foundation and Nuffield Trust sets out five of the options for pay reform and explains the advantages and pitfalls of introducing them.

The case for reforming pay in the adult social care sector in England is strong. Low pay for care workers contributes to chronic staffing problems and high levels of poverty among workers, and senior staff are insufficiently rewarded for the additional skills and responsibility that they hold. All of this will have a negative effect on the care that older and disabled people receive.

Calls to improve pay in social care have been growing for some time. The public are supportive too: our polling for this research found that some 77% of people believe that care workers are paid too little.

But as yet there has been no long-term, national policy to improve wages in the sector beyond economy-wide, statutory minimum wage levels. The Labour government has announced its ambition to introduce a ‘fair pay agreement’ for social care, setting out minimum pay and terms and conditions, while promising to consult widely and draw on the available international evidence.

This joint report from the Health Foundation and the Nuffield Trust sets out five policy options to improve pay that could form part of the new government’s approach to social care pay.

National policy options to increase care worker pay in England

Progress on pay is possible with political will: Scotland and Wales have introduced sector minimum wages, and Australia, France and New Zealand have successfully introduced sector pay scales. 

But in England, additional national funding and stronger enforcement will undoubtedly be necessary for achieving pay reform. The new government must immediately address the problem of low pay in adult social care by tackling illegal underpayment of wages, and consult the sector on a separate minimum wage and a national pay scale.

Each of the policy options has benefits and drawbacks. But if the government can get this right by offering a more targeted approach to pay in social care, this could stabilise the sector’s recruitment and retention challenges, offer real opportunities to improve the lives of thousands of care workers, and help improve the quality of people’s care. 

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Suggested citation

Hemmings N, Allen L, Lobont C, Burale H, Thorlby R, Alderwick H and Curry N (2024) From ambition to reality: national policy options to improve care worker pay in England. Research report, Health Foundation and Nuffield Trust

Appears in

  • Senior Policy Officer
  • The Health Foundation

Hanan Burale

Guest
  • Research and Policy Officer
  • Royal College of General Practitioners