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United KingdomLegislation gov

England gets statutory negotiating body for adult social care pay

Employer and union representatives under an independent chair will negotiate a Fair Pay Agreement; once ratified it becomes enforceable in covered workers' contracts.

By Taxxa AI OyPublished 3 November 2026

Payroll & Labour

Industry: Human health and social work activities

A statutory negotiating body for adult social care pay in England is being established. The Adult Social Care Negotiating Body for England Regulations 2026, made under Part 3, Chapter 2 of the Employment Rights Act 2025Legislation, create the Adult Social Care Negotiating Body for England as an advisory non-departmental public body operating at arm's length from the Department of Health and Social CareLegislation. Employer representatives and trade union officials representing workers sit as voting members, with non-voting members including local government representation alongside observers and independent specialist advisers. The Secretary of State appoints an independent Chair through the public appointments process to bring members together, lead negotiations and ensure all voices are heard, and may pay fees and expenses to the Chair and members. A secretariat of civil servants supports the body.

The body convenes collective bargaining for a Fair Pay Agreement covering adult social care workers in EnglandLegislation. Its statutory remit covers pay, terms and conditions, and wider matters such as training and development, career progression and human resources policies and procedures. The Secretary of State initiates negotiations by issuing a remit letter that may specify matters the body must consider together with factors, consultation requirements, conditions and deadlines it must observe; the body may also take up other matters within its remit at its own discretion. The body reports whether agreement has been reached and submits any agreement to the Secretary of State, who may ask it to reconsider an agreement in part or in full, amend or withdraw a referral where there is an error or material change in circumstances, or extend a deadline. If the body fails to reach an agreement, the Chair notifies the Secretary of State, who is enabled to determine an outcome on specified matters through the power in section 48 of the Act. A schedule sets appointments, terms of reference, and confirmation that vacancies or defects do not invalidate proceedings.

Once ratified, a Fair Pay Agreement becomes legally enforceable in covered workers' contractsLegislation. That reverses the previous position in which pay, terms and conditions were set by individual employers subject only to statutory minimum requirements, with no sector-wide bargaining mechanism. Pay elements are underpinned by the Fair Work Agency alongside existing enforcement routes for wider terms and conditions, and implementation and compliance guidance will be co-produced by the Department and the body around the time of the first ratification.

The policy targets around 1.5 million workers in England, most paid at or just above the National Living Wage, with staff turnover at 23.1% in 2024/25 and an estimated 1 in 5 workers in in-work poverty. The government intends the remit letter to set an initial funding envelope of 500 million in grant funding for local authorities in 2028/29 as a condition the agreement must meet, with regard to affordability for councils, the NHS and self-funders. Risks identified include unaffordable outcomes for providers and commissioners and self-funders delaying care.

A public consultation from 30 September 2025 to 6 March 2026 received 1,221 responses showing broad support alongside concerns on affordability and representation; the government responded on 16 July 2026. A de minimis assessment covers only the framework's negotiation-participation costs, with a broader assessment intended alongside any ratified agreement. The Department will review the Regulations after the first negotiation cycle. The provisions are stated to be compatible with Convention rights, and the body's records become public records.

Legal basis: Part 3, Chapter 2 of the Employment Rights Act 2025 (including the establishment power and the section 48 determination power) and the Adult Social Care Negotiating Body for England Regulations 2026.

Track the Secretary of State's remit letter and the negotiating body's talks, and prepare payroll and contracting arrangements to apply the first ratified Fair Pay Agreement to covered workers in England.

Sources