Title

WHITEHALL

Local authorities to fund half of increased labour costs under fair pay agreement

Councils are projected to fund more than half (52%) of increased labour costs passed on by providers from the fair pay agreement for social care, Government analysis has found.

(c) Anthony/Unsplash

(c) Anthony/Unsplash

Councils are projected to fund more than half (52%) of increased labour costs passed on by providers from the fair pay agreement for social care, Government analysis has found.

An impact assessment carried out by the Department of Health and Social Care found the NHS would cover 17% of the increased labour costs, with self-funders paying for almost a third (31%).

The assessment forecasted a 2.8% wage increase in 2028-29 would be possible given the £500m made available for additional local authority expenditure, which, on top of the increase in the National Living Wage (NLW), would mean a pay uplift of 5.1% between 2027-28 and 2028-29.

It said that on the basis of current funding an adult social care negotiating body could introduce a pay floor 68p above the expected NLW in 2028-29.

 

 

WHITEHALL

Lessons from Swansea: A collaborative approach to addressing poverty stigma

By Amanda Hill-Dixon | 11 June 2026

Amanda Hill-Dixon sets out evidence-informed actions for councils to reduce poverty stigma through universal services, dignified support, inclusive communica...

WHITEHALL

How we can sort out social care

By Lee Peart | 08 June 2026

Adult social care leaders gathered at The King’s Fund charity to discuss the prospects for finally addressing the fundamental issues facing the sector ahead ...

WHITEHALL

Fair Funding: Have rural councils in England really lost out?

By Gabriel Stewart | 26 May 2026

When it comes to spending power, exclusive Institute for Fiscal Studies’ analysis has found funding will be broadly the same across rural and suburban areas....

WHITEHALL

Exclusive: Rural and urban council funding 'more or less' the same

By Ann McGauran | 26 May 2026

Funding levels will be broadly the same for urban and rural councils under the Government’s fair funding reforms, according to exclusive analysis from the In...

Lee Peart

Popular articles by Lee Peart