Earlier this week, Secretary of State for Health and Social Care, Wes Streeting, announced that £500 million will be invested into the Fair Pay Agreement for the adult social care sector from 2028.
This news is hugely welcome, and a vital step in ensuring that all care workers in England are paid at least the real Living Wage. The real Living Wage currently sits at £12.60 across the UK, and £13.85 in London. IPPR research shows it would cost just £415 million to bring England in line with Wales and Scotland and ensure that every care worker in England is in receipt of at least the real Living Wage. Social care jobs are challenging, skilled and important to the fundamental fabric of our society, and yet remain one of the lowest paid sectors in the UK, with 43% of adult social care workers being paid less than the real Living Wage – rising to 80% in London.
Nkem Okoli, a care worker, said “I went in to care because I am an empathetic person. I always try to put myself in other people’s shoes. I would love to see my passion for my work reflected in my pay. I have poured my heart and soul into my work, taking every opportunity to improve my skills; doing many overtime shifts to add to my income. Taking care of someone else’s family is rewarding, but I also need to take care of my own. A real Living Wage means I could spend more time with my children and feel less guilty. I could work the right number of hours and give my all to my job.’
A real Living Wage is also good for the sector. There are currently over 152,000 vacancies in adult social care and a vacancy rate of 9%. As of August 2023, this meant over a quarter of a million people were awaiting a needs assessment. The real Living Wage has been proven to contribute towards improved staff recruitment and retention rates in many sectors. A 2022 Sector Pulse Check report by Hft found that 95% of providers felt that increasing pay would have a positive impact on recruitment and retention of good staff. There are also positive knock-on effects, including reducing pressures on the NHS by supporting people to stay healthy and well and to be discharged from hospital safely.
Ian Willis, Founder of Abney & Baker, a care employer said, ‘Because we pay better, we attract better candidates, who in turn become better employees who stay with us for longer. We’ve got something like twice the length of service compared to our competitors. We’ve retained staff very well and that means that we can have lower overheads and focus on really investing in our existing team.’
As a sector that employs 1.6 million people nationally, investment in social care would also deliver a huge economic boost. Research by Cardiff Business School for the Living Wage Foundation found that if just 25% of low paid workers in the UK were moved into the real Living Wage there would be a £1.2 billion boost to the economy. This is particularly true in areas with high levels of in-work poverty. For example, the highest proportion of jobs paid below the real Living Wage is in Yorkshire and The Humber, West Midlands, East Midlands and the North East – with 19.2% of all jobs in the North East paid below the real Living Wage. If 25% of low paid workers in the North East were lifted onto the real Living Wage, it would offer a £40 million boost to the regional economy.
The £500 million allocated for the Fair Pay Agreement is a crucial first step towards a real Living Wage in social care. It’s important that this pay uplift is felt as soon as possible so that those caring for our most vulnerable can live with dignity, and to help strengthen a crucial sector to the fabric of our society.
They care for us; its time society cared for our social care workers by paying them a real Living Wage.