You may have seen recent news about pay reform in adult social care, and questions about whether promised pay increases will lead to real improvements in take-home pay. We wanted to share a clear, practical explanation of what’s being discussed and why it matters to people working in care.
Recent figures shared by Care England highlight the impact of frozen Income Tax and National Insurance thresholds. While pay rates may continue to rise, keeping these thresholds frozen means that a growing proportion of those increases is taken through deductions before it reaches workers.
Many care workers have seen changes to their hourly pay over recent years. These increases are important, particularly as the Fair Pay Agreement is intended to recognise the value of care work and support a more stable workforce. However, the recent Care England report helps explain why pay rises do not always feel as though they stretch as far as expected.
Why Pay Increases May Not Feel Like Increases
From 2026–27 onwards, frozen tax thresholds are expected to reduce take-home pay across the sector year on year. By the time the Fair Pay Agreement takes effect in 2028–29, more than 2% of pay could be lost annually through higher deductions, following several years of cumulative impact. This means that even when pay increases are agreed, their full value is not always felt in day-to-day life.
Alongside this, care providers are facing rising costs linked to employer National Insurance, adding further pressure at a time when services are working hard to support staff and maintain quality of care.
Ensuring Reform Leads to Real Benefit
Care England, alongside voices from across the sector, is calling for action to ensure that pay reform delivers real benefits in practice. This includes adequate funding for the Fair Pay Agreement, earlier intervention to address the impact of frozen thresholds, and targeted measures that genuinely leave care workers better off.
Fair pay is fundamental. Being able to make ends meet, feel secure, and feel recognised for the work you do matters.
As conversations about pay reform continue, we hope that highlighting the realities behind the headlines helps support meaningful change, so that improvements are felt not just in policy, but in everyday working lives.
