The new report from The Health Foundation based on 2021/22-23/24 data finds one in five residential care workers in the UK lives in poverty, more than one in 10 experience food insecurity and 15% rely on Universal Credit. Additionally, one in 10 children of residential care workers go without essentials, like a warm winter coat.

Lucinda Allen, policy fellow at The Health Foundation, said: 'Around one in every 20 working people in England is employed in social care. Enhancing pay and working conditions in the care sector could be an important part of the Government's growth agenda, improve people's lives and help fill the 131,000 social care vacancies. The Government must deliver on its promise of fair pay for care workers, alongside wider improvements to our care system.'

Four-fifths of UK jobs pay more than the average care worker salary of £12 an hour in 2024, with many care workers on zero hours contracts and exploitation on the rise, the think-tank says.

In addition, over one-third of residential care workers born outside the UK live in poverty, compared to one tenth of those born in the UK.

The report says the Government's Employment Rights Bill has the potential to lift workers out of poverty while planned fair pay agreements could set a new sector minimum wage.

The analysis estimates raising the wage floor in social care to the level of clinical support workers and administrative workers in the NHS (Agenda for Change Upper Band 3) would result in an average 6.6% rise in household income for residential care workers and their families. The Health Foundation has previously estimated that £2.3bn would be needed in 2028/29 to increase pay for the care workforce to at least NHS Agenda for Change Band 3.

The Health Foundation warns current spending plans risk leaving local authorities to choose between providing people with the care they need and funding much-needed wage rises for the care workforce. 

It also calls for the Casey Commission to move swiftly to bring forward its recommendations, including improving access to publicly funded care and better protecting people against care costs.

Beyond social care, the think-tank also urges greater measures to tackle poverty, including scrapping the two-child limit on benefits.

Reaction 

Liberal Democrat Care and Carers spokesperson Alison Bennett said: ‘The Government must heed this report and bring forward the recommendations at pace so that we can finally start rebuilding social care, so people can access the care they need and those working in the sector can escape these awful conditions.'

Unison general secretary Christina McAnea said: ‘By finding the funding for a fair pay agreement that should see care workers rewarded properly, the Government will be showing it's serious about transforming the crisis-ridden sector. 

‘Decent wages have to be at the heart of the promised National Care Service the country needs so desperately.'