Fair Pay Agreement process in adult social care: consultation response
This consultation response sets out the county perspective on the government's forthcoming Fair Pay Agreements in adult social care.
Our consultation response sets out our position on the proposed Fair Pay Agreement (FPA) process for adult social care. Whilst we support the ambition to improve pay, terms and conditions for the workforce, councils should have an equal and active role in the development process, alongside employers and employees.
Councils are major employers and the largest commissioners of adult social care in England, with a statutory duty to shape the care market. These responsibilities include encouraging quality, choice and suffiency of provision, contingency planning in case of provider failure, and ensuring care is maintained where a provider fails financially and service cease. However, the proposed process does not give local government a seat on the Adult Social Care Negotiating Body (ASCNB).
We warn that the proposed process does not offer any guarantees that care market expertise is in the room during the negotiation of fair pay agreements. This risks any fair pay agreement being impracticable and unviable. Financial modelling commissioned by the County Councils Network shows that the government’s earmarked £500m for the first fair pay agreement equates to a 3% uplift in pay for low-paid adult social care workers.
However, when including costs to the NHS and people funding their own care, total costs are 65% higher than council‑only estimates. Any fair pay agreement needs to be fully funded.
Recommendations to the government include:
- Functionally embedding the interests of local government throughout the fair pay agreement process, including an equal and active role for councils on the Adult Social Care Negotiating Body.
- Fully funding any fair pay agreement – in terms of both direct and indirect costs to councils – to ensure it is practicable and sustainable. This includes underwriting any equal pay risks.
- Addressing the specific needs of county and rural area care markets within the development process.
- Reviewing if the actual implementation of a confirmed fair pay agreement constitutes a ‘new burden’ for local government.