By Jo Seery, Professional Support Lawyer
The Employment Rights Act 2025 (ERA) gives the Government the power to establish the Adult Social Care Negotiating Body (ASCNB) in England. There are separate and different powers that apply to Wales and Scotland. Regulations will set out the process for reaching a fair pay agreement for adult social care workers.
The Government consulted on the design of the fair pay agreement process in England, between 30 September 2025 and 6 March 2026. In its response published its response to the consultation on introducing a Fair Pay Agreement (FPA) for adult social care in England, confirming that it intends to press ahead with a sectoral collective bargaining model by establishing an independent Adult Social Care Negotiating Body (ASCNB).
The ASCNB will have an equal number of worker and employer representatives to be appointed ahead of negotiations which are due to begin in April 2027. The trade union group will be convened by the TUC while employer representatives will be coordinated by the Care Provider Alliance (CPA) which should be representee of the diversity of the sector rather than dominated by the large or for-profit providers.
Workers directly employed by local authorities or the NHS will initially be excluded on the basis that they are covered by other collective bargaining and pay arrangements (the NHS Pay Review Body, Agenda for Change and the National Joint Council for Local Government Services) although this is to be reviewed after three years. Presumably this also will depend on how the Government’s plan for a National Care Service develops.
While in the first year the intention is to provide ASCNB with “the flexibility to determine its priorities” this will depend on the remit letter issued by the Secretary of State. The body can consider wider employment issues in addition to pay and terms and conditions such as training career progression and additional benefits but given the low levels of pay within the sector the priority will be on rewarding care workers who have for so long been underpaid as their responsibilities and duties have become more and more demanding due to supporting an increasing number of service users who have complex needs.
While the core structure of the scheme remains the same as that proposed in the consultation, several refinements have been made. Local authorities will have a greater role in the process, providing evidence on affordability before and during negotiations and participating as non-voting members of the negotiating body. The government has also placed increased emphasis on ensuring any agreements are affordable and sustainable, with funding considerations expected to play a significant role in negotiations and ministerial approval.
The reforms are intended to address longstanding concerns about low pay, workforce shortages and staff retention in the care sector, while improving the quality and sustainability of care services. The Government has set the maximum funding for the first year at £500 million. The key question is whether this will be enough.
