Labour has announced plans to raise pay for care workers in England from 2028, alongside the creation of a new negotiating body bringing together trade unions and employers to improve wages and conditions in the sector.
Health secretary Wes Streeting will allocate £500m to fund the initial increase and begin setting up the body this year.
The first of its kind in the UK, will establish a legally backed fair pay agreement, with recommendations applying across both public and private care providers.
The move forms part of Labour’s wider workers’ rights package, aimed at addressing the sector’s recruitment and retention crisis. Almost 10 per cent of care roles remain vacant, a figure expected to rise under tighter rules on overseas worker visas.
Negotiations will take place in 2027, with the agreed pay and conditions set to take effect the following year.
While unions welcomed the plan, they warned the £500m commitment is insufficient and urged ministers to provide more funding to end the staffing crisis.
Streeting will confirm the policy at Labour’s conference, saying the government “will no longer accept a system built on poverty pay and zero-hour insecurity.”
Unison’s general secretary, Christina McAnea, hailed the move as a landmark shift but stressed that more investment is needed to build a national care service.
Streeting will also credit Angela Rayner, Labour’s former deputy leader and ex-care worker, as the architect of the plan.
