The Adult Social Care Negotiating Body will bring together trade unions and employers to negotiate on behalf of the sector.

Minister of state for care Stephen Kinnock said: ‘We are giving care workers a voice and a fair deal, we are giving them better rights, proper training and opportunities for progression – and bolstering the workforce while making caring a more attractive career.'

Through the body, care providers and workers will have voting rights on pay, terms and conditions, and wider employment matters.  

An independent chair to oversee the negotiations between employer and worker representatives will be appointed in early 2027. 

The first round of negotiations will commence in April 2027 and the first settlement will be introduced by April 2028. 

A career structure to help professionalise the social care is also being developed.

The changes are part of the government's mission to create a National Care Service and follows over £4.6bn additional funding that has been made available for adult social care in 2028-29.

The Fair Pay Agreement is being backed by £500m in Government funding.

Cllr Dr Wendy Taylor, chair of the Local Government Association's Health and Wellbeing Committee, said councils were ‘concerned' the proposed funding would not cover FPA costs.

She added: ‘Councils have a critical role in commissioning adult social care for local people and statutory responsibilities, but local government is set to be sidelined in the FPA process. We strongly urge Government to reconsider this – local government must be part of decision-making to avoid a scenario where an FPA jeopardises the supply of care and sustainability of council finances.'