Fair Pay Agreement currently ‘unworkable’ says LGA

In its submission to the Department for Health and Social Care’s FPA in Adult Social Care consultation, the LGA called for local government to be at the heart of the FPA process.

While the government has announced £500m will be available for the first FPA in 2028, drawn from the £4 billion that was previously announced in the Spending Review – a figure incorporating income from council tax increases – the LGA is concerned that, with 1.6m workers in adult social care potentially in scope, even this amount would not be sufficient to cover a FPA in full and would put further pressure on already stretched council budgets.

The LGA has therefore called for full central government funding for all costs, including implementation and consequent legal liabilities, direct local government representation within the Adult Social Care Negotiating Body (ASCNB), a full Equality Impact Assessment, and a recognition of the legal and bureaucratic burdens placed on councils.

Cllr Pete Marland, chair of the LGA’s Local Government Resources Committee, said: “The focus on improving pay in adult social care is important and a vital step towards securing long-term sustainability for the sector and its workforce.

“However, current funding proposal is not likely to be sufficient to cover the full cost of a Fair Pay Agreement and councils cannot be expected to fork out for the additional costs associated with implementation. Councils need assurances that all costs arising from the introduction of FPAs will be covered by central government.

“Local government has a critical role in adult social care for local people, but is proposed to have minimal engagement in the development of an FPA. Local government needs to be part of decision-making to avoid a scenario where the introduction of an FPA jeopardises the supply of care and sustainability of council finances.”