Amelia DaviesAdult Social Care Fair Pay Agreement: A Complete Guide for Workers (2026)
The Adult Social Care Fair Pay Agreement (FPA) is a landmark development for the 1.6 million people who work in adult social care in England. Enabled by the Employment Rights Act 2025, it creates a legally enforceable framework for setting minimum pay, terms, and conditions across the entire sector for the first time. This guide explains what the agreement means for care workers, what you are entitled to now, and what changes are expected once the first concluded FPA comes into force.
What Is the Adult Social Care Fair Pay Agreement?
The Adult Social Care Fair Pay Agreement is England's first statutory sector-wide collective agreement for care workers. Unlike voluntary collective agreements negotiated at individual employer level, this FPA is established by law — meaning its terms, once agreed, are binding on all covered employers, including care homes, domiciliary care providers, supported living services, NHS Trusts, and local authorities.
The agreement is negotiated by the Adult Social Care Negotiating Body, a statutory body established from October 2026 under powers created by the Employment Rights Act 2025. The Negotiating Body brings together:
Trade union representatives:
- UNISON (the UK's largest public sector union, representing over a million health and care workers)
- Unite the Union
- GMB
Employer representatives:
- Social care employer associations
- Local authorities
- NHS Trusts commissioning or directly delivering adult social care
The Negotiating Body is responsible for negotiating the terms of the first FPA. Formal negotiations began in October 2026, and the first concluded agreement — setting binding minimum terms across the sector — is expected to come into force by 2028.
The FPA was a flagship commitment of the Labour government and is backed by a £500 million government investment announced in September 2025 to support improved care worker pay in the years running up to the first concluded agreement. A public consultation on the design of the Negotiating Body and the FPA process ran from September 2025 to January 2026, gathering views from employers, unions, workers, and the public.
Scope of coverage: The FPA covers approximately 1.6 million paid workers in adult social care in England, including care assistants, support workers, community care workers, domiciliary carers, reablement support workers, personal assistants employed through direct payments, and equivalent roles in social care settings. It does not extend to Scotland, Wales, or Northern Ireland, where separate workforce arrangements apply.
Pay and Pay Award 2026
The Adult Social Care FPA, once concluded, will establish sector-specific minimum pay rates designed to go beyond the statutory National Living Wage (NLW). While the Negotiating Body completes its work, the statutory minimum applies.
Current statutory minimum pay rates (from April 2026):
| Worker category | Hourly rate |
|---|---|
| National Living Wage (age 21 and over) | £12.21 |
| National Minimum Wage (age 18–20) | £10.00 |
| Young worker rate (age 16–17) | £7.55 |
| Apprentice rate | £7.55 |
The stark reality of adult social care pay in England is that a significant proportion of the 1.6 million workers in the sector are paid at or very close to the NLW. The sector has historically struggled with high turnover, recruitment shortages, and wage compression — with many experienced care workers receiving little premium above the statutory floor.
The FPA framework is designed to address this by establishing:
- A sector-wide minimum care worker pay rate set above the NLW, with rates reviewed annually
- Recognised pay differentials for senior care workers, team leaders, care co-ordinators, and specialist roles (including those supporting people with learning disabilities, dementia, or complex health needs)
- A transparent pay structure with defined service-linked progression points
Until the first FPA takes effect, employers must pay at least the NLW under the National Minimum Wage Act 1998. Workers who believe they are being underpaid below the statutory minimum can report this to HM Revenue & Customs (HMRC), which enforces NMW compliance.
The £500 million announced by the government is expected to flow through local authority funding settlements and NHS commissioning budgets to enable employers to begin paying above the NLW ahead of the formal FPA, particularly for council-employed and NHS-employed care staff.
Working Hours and Leave Entitlement
Annual Leave
Under the Working Time Regulations 1998 (WTR 1998), all workers in England — regardless of contract type — are entitled to a statutory minimum of 28 days' paid annual leave per year (inclusive of bank holidays). For a full-time worker, this equates to 5.6 weeks.
Part-time and variable-hours workers accrue leave on a pro-rata basis. For zero-hours or casual workers, leave is calculated as 12.07% of hours worked.
The Adult Social Care FPA is expected to set enhanced leave entitlements above this statutory baseline, linked to length of service:
| Length of service | Minimum target entitlement under FPA |
|---|---|
| 0–2 years | 28 days (statutory minimum under WTR 1998) |
| 3–5 years | ~30 days |
| 5 years and over | ~33 days |
These enhanced entitlements will be confirmed once the first FPA is concluded.
Bank Holidays
Workers are entitled to the 8 standard England and Wales public holidays. Under most social care contracts, bank holidays are either included within the 28-day minimum or attract an enhanced rate of pay (typically time-and-a-half or double time) if worked. Your written statement of particulars under ERA 1996 s.1 must specify your bank holiday arrangement.
Working Time and Rest
The WTR 1998 limits average weekly working time to 48 hours unless you have opted out in writing. All workers are entitled to:
- 11 consecutive hours' rest between working days
- 24 hours' uninterrupted rest per week (or 48 hours per fortnight)
- 20 minutes' rest break for shifts longer than 6 hours
These protections cannot be contracted away even in the social care sector, where shift patterns and on-call arrangements are common.
Redundancy Pay
If you are made redundant, your statutory redundancy pay is calculated under Part XI of the Employment Rights Act 1996 (ERA 1996):
- 0.5 week's pay per complete year of service while under age 22
- 1 week's pay per complete year of service aged 22–40
- 1.5 weeks' pay per complete year of service aged 41 and over
Weekly pay for this purpose is capped at £700 per week (the 2026 statutory cap). Qualifying service is capped at 20 years, giving a maximum statutory payment of £21,000.
Example: A care worker aged 44 with 7 years' service earning £450 per week:
- 7 years × 1.5 weeks (aged 41+) = 10.5 weeks × £450 = £4,725 statutory redundancy pay
You must have at least 2 years' continuous employment with your employer to qualify for statutory redundancy pay (ERA 1996 s.155).
The FPA Negotiating Body is expected to consider enhanced redundancy terms for the sector, recognising that many long-serving care workers receive only statutory entitlements. Local authority employers are typically subject to more generous redundancy provisions under their own collectively agreed terms.
Notice Period
Your statutory minimum notice entitlement under ERA 1996 s.86 is:
| Continuous service | Minimum statutory notice |
|---|---|
| 1 month to under 2 years | 1 week |
| 2 years to under 12 years | 1 week per year of service |
| 12 years or more | 12 weeks |
Many care employers provide contractual notice periods of 4–8 weeks, particularly for senior roles. The FPA is expected to set minimum contractual notice standards for defined care worker grades.
If your employer dismisses you with inadequate notice, you have the right to claim wrongful dismissal under ERA 1996 or at common law, and to recover the pay you would have received during the correct notice period.
Pension Rights
Pension provision in adult social care varies significantly depending on who employs you.
Local Authority Employees
Workers directly employed by local authorities are typically enrolled in the Local Government Pension Scheme (LGPS), a defined-benefit (career average) scheme. Employee contributions in 2026:
| Pensionable pay | Employee contribution rate |
|---|---|
| Up to ~£17,600 | 5.5% |
| £17,601 – ~£27,600 | 5.8% |
| £27,601 – ~£45,500 | 6.5% |
| Above ~£45,500 | Higher tiers apply |
Employer contributions are ~19–21%. The LGPS provides a secure, inflation-linked pension based on your career average salary.
NHS Trust Employees
Workers employed directly by NHS Trusts or local NHS-commissioned providers may be eligible for the NHS Pension Scheme 2015, a career average defined-benefit scheme. The accrual rate is 1/54th of pensionable pay per year of membership, with an employee contribution of between 5.1% and 13.5% depending on earnings, and an employer contribution of 23.7%.
Private and Voluntary Sector Employers
Workers in independent care organisations — the largest employer group in the sector — are covered by automatic enrolment under the Pensions Act 2008. Employers must enrol eligible workers and pay minimum contributions:
- Employee contribution: at least 5% of qualifying earnings
- Employer contribution: at least 3% of qualifying earnings
Qualifying earnings in 2026 are calculated on pay between £6,240 and £50,270 per year. While auto-enrolment provides a basic private pension, it represents significantly less generous provision than the LGPS or NHS Pension Scheme.
Addressing this pension inequality across the sector is one of the long-term goals of the FPA process.
Your Rights Under the Agreement
The Employment Rights Act 2025 and the Adult Social Care FPA framework give workers in this sector a strengthened set of protections:
Day-one unfair dismissal rights. The Employment Rights Act 2025 extends protection against unfair dismissal under ERA 1996 Part X to workers from their first day of employment, removing the previous two-year qualifying period for most claims.
Union recognition and collective bargaining. Under TULRCA 1992 Part I Chapter IV, UNISON, Unite, and GMB hold statutory recognition rights with covered employers. Workers have the right to join a union, be represented in individual disputes, and participate in collective bargaining without suffering detriment or dismissal.
Written statement of particulars. All workers are entitled from day one to a written statement of their key terms under ERA 1996 s.1, including pay rate, hours, leave entitlement, and notice provisions. Failure to provide this is actionable at employment tribunal.
Working time protections. The 48-hour average weekly limit, minimum rest periods, and annual leave entitlements under the WTR 1998 apply to all workers, including those on zero-hours or bank contracts.
Frequently Asked Questions
When will the first concluded Fair Pay Agreement come into force? The Adult Social Care Negotiating Body was formally established in October 2026 and has begun negotiations. The first concluded FPA — setting legally binding minimum terms — is expected to come into force in 2028. Workers will receive notice from their employer when the agreement applies to them.
Does the FPA apply to me if I work for a private care company? Yes. The FPA is designed to cover all employers in adult social care in England, including private limited companies, charitable organisations, and social enterprises. Once concluded, its terms will be legally binding on all covered employers regardless of size or ownership.
I'm employed through a personal budget or direct payment — am I covered? Personal assistants employed directly by individuals using personal budgets or direct payments fall within the intended scope of the FPA. Guidance for this group of employers will be issued by the Negotiating Body as negotiations progress.
What is my current minimum hourly rate as a care worker? In 2026, all workers aged 21 and over must receive at least the National Living Wage of £12.21 per hour. This is a legal floor under the National Minimum Wage Act 1998. If your employer pays less, you can report underpayment to HMRC's National Minimum Wage enforcement team.
Can my employer use the FPA to reduce my existing pay or benefits? No. The FPA sets minimum floors — it cannot be used to reduce terms already in your contract. Your existing contractual entitlements remain enforceable under contract law and ERA 1996. The FPA can only improve on the statutory minimums, not reduce them.
How can I get involved in shaping the agreement? UNISON, Unite, and GMB are the recognised unions on the worker side of the Negotiating Body. Joining your relevant union is the most effective way to have a voice in the negotiations and to receive updates as the agreement develops. Membership also provides access to free legal advice, representation at disciplinary and grievance hearings, and support with tribunal claims.
Calculate Your Entitlements
Interactive Calculator Use our Adult Social Care Fair Pay Agreement Pay & Rights Calculator to estimate your pay, redundancy entitlement, annual leave, and pension under this agreement.
This guide is for general information only and does not constitute legal advice. For advice specific to your situation, consult your union representative or a qualified employment solicitor.
