Care workers need an interim pay rise

A leading UK health and social care charity states care workers urgently need an interim pay uplift ahead of any Fair Pay Agreement. They claim doing so would reduce staff turnover rates and fill some of the current 112,000 vacancies.

In the latest edition of their Unfair to Care report, charity Community Integrated Care says that a 50p increase in hourly pay for 1.29 million frontline social care and support workers would cost the Government no more than £723 million. That’s just 2.8% of the additional funding given to the NHS in the autumn 2024 Budget.

The report warns that the 30.3% (£7,120 per year) pay gap between social care support workers and their NHS Band 3 equivalents is unacceptable. The result is a turnover rate of 26.5% (equivalent to 285,000 people leaving care jobs each year), which in turn impacts those who rely on continuity of care to meet their daily needs.

Social care triple win

Community Integrated Care provides care services for thousands of people across England and Scotland. They support a range of people, from those with complex care needs, to learning disabilities and mental health conditions. Chief Executive Officer Jim Kane says that an immediate pay uplift is fair and would deliver a better social care system alongside economic benefits, in what the charity calls a ‘Social Care Triple Win’:

• Better lives for people who deliver and access care
• A cost-effective and sustainable social care and health system
• Stronger economic growth through reduced welfare spending, greater employment opportunities, and increased investment in low-income areas

Mr Kane says that the sector can’t wait for a Fair Pay Agreement that won’t be reached until 2027 at the earliest. Even then, he states, it’s unclear where the money for such an agreement would come from, particularly since the Treasury isn’t involved in the discussions. Instead, he believes the Government should focus on the economic benefits of improving pay in the sector now.

“All of the research we have drawn on suggests that if you pay low-paid people more money, it’s likely to return to the economy,” he says. “We are not talking about people who would take all the additional wages they are paid and invest it in the stock market or invest it in buy-to-let property. This is money that’s going to be returned into the cycle, so there’s a benefit to communities.

“There’s obviously a benefit to the Exchequer from tax and National Insurance and all the rest of it. But there are also potential benefits in a social care workforce that would integrate much better with the NHS workforce. The productivity gains of an integrated system can be properly enabled by having a workforce that is correctly valued.”

Overcoming misconceptions

The effect of low pay is that social care providers are sometimes only able to provide core services. They often don’t have the people needed to offer life-enhancing activities, such as supporting people to engage in hobbies and activities, or connect with their communities.

Many providers are also having to employ agency workers at a cost of around 30% more than their own staff. This money could otherwise be invested back into their services.

While the sector is often perceived as being low-skilled, Mr Kane challenges this misconception. Social care support worker roles are deeply complex and carry significant responsibility – demanding a combination of passion, technical expertise, and emotional intelligence.

He says the effect of low pay on the people who rely on social care workers is profound. Those with communication needs, for example, need a consistent support team to feel safe, understood, and heard. But when high staff turnover leads to constant changes in their support team, it disrupts that trust and makes meaningful connection harder to achieve.

Reforming social care

While Baroness Casey is leading an independent commission into adult social care and how it can best be reformed, the conclusions remain some way off. Mr Kane acknowledges a growing consensus among sector leaders that no substantial change is likely during the lifetime of this Parliament.

“A Fair Pay Agreement will be very welcome,” he says. “However, while it’s still early days, there are understandable concerns about how it will be practically delivered. For providers like us, who deliver only publicly funded services, all income flows from central government through local authorities. This creates a long-standing challenge where responsibility is passed between the two – with central government pointing to local authorities, and local authorities citing a lack of sufficient funding – often resulting in inaction.”

Mr Kane states that the issue of low pay continues to have a serious impact on the sector’s ability to provide consistent, high-quality care. There is clear evidence that financial margins are tightening, he adds, which is making it harder for providers to invest in change and innovation. “A constructive first step would be an interim funding uplift to increase hourly pay – a practical measure that could help stabilise the workforce, protect service quality and ensure a fairer, stronger future for social care.”