The Employment Rights Bill proposes to make significant changes to the adult social care sector, by enabling the creation of a national negotiating body for the adult social care sector (ASC Negotiating Body) and Fair Pay Agreements.
On 30 September 2025, the Department of Health and Social Care launched a consultation on the process for implementing the Fair Pay Agreements. The consultation will remain open until 16 January 2026, offering an opportunity for care providers and workers to provide their input and shape the framework.
The new consultation could be a catalyst in the care sector with the potential to reshape pay and terms and conditions. Therefore, it is important for care sector businesses to ensure they monitor the consultation and they stay up to date with developments.
ASC Negotiating Body
At the core of the consultation is the creation of a new national body, ASC Negotiating Body, that will be tasked with negotiating pay, terms and conditions, training and career progression for adult social care workers, ultimately creating Fair Pay Agreements.
The negotiating body is expected to be established in 2026/27, with the first negotiations taking place in 2027/28 and to implement a Fair Pay Agreement in 2028/29. The ASC Negotiating Body is expected to be made up of representatives from trade unions and employer organisations (although this is still to be determined pending the consultation), who will be required to work together to negotiate and agree minimum standards across the adult social care sector.
Once negotiations are initiated, the ASC Negotiating Body will have six months to reach an agreement, which will be followed by a six-month implementation period. The agreed terms will be legally binding and employers will be required to abide by them.
Fair Pay Agreement
The exact terms of the Fair Pay Agreements have not been determined. However, the consultation document provides a clear indication of key features. Fair Pay Agreements are intended to set minimum standards for pay and terms and conditions, which will be enforceable by law. These rules will apply to all workers and it will not be dependent on whether they are a union member.
They may have the following impacts on pay:
- Pay scales linked to different roles in adult social care
- A sector minimum wage that would be above national minimum wage
- An introduction for bonuses and supplements for things such as unsocial hours
The first agreement is envisaged to come into effect in 2028. Once it is implemented, employers will need to check whether their workers fall within the coverage of the agreement and ensure compliance.
Impact on Employers
The consultation demonstrates a move towards sector wide standardisation of pay and conditions. As the consultation is live, there is an opportunity for businesses to have their say and help shape the final framework.
One of the main changes is that there will be a potential increase in wages. Therefore, employers should consider their budgeting and financial planning early.
If you have queries or questions in relation to fair pay agreements, please do not hesitate to contact a member of the AfterAthena team (part of the Napthens Group) who are able to offer 30 minutes of free advice to QCS members.
If you have any questions in relation to environmental proposals to help support employees take steps in relation to climate change, please do not hesitate to contact a member of the AfterAthena team (part of the Napthens Group) who are able to offer 30 minutes of free advice to QCS members.
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