We launch Unfair To Care 2025

Community Integrated Care has today (Wednesday 12th March) launched ‘The Caring Economy – Unfair To Care 2025’, the fourth edition of our charity’s Unfair To Care series [i]. You can read the full report here.  

The report once again exposes a persistent pay gap between social care support workers and their NHS counterparts. We also call on the Government to take immediate action by uplifting care worker wages, arguing that fair pay is not only affordable, but a crucial investment in economic growth and the long-term sustainability of the NHS. 

Using exclusive measurement by global leaders in job evaluation, Korn Ferry, Unfair To Care 2025 reveals a 30.3% – or £7,120 a year – pay gap between social care support workers and their direct equivalents working in Band 3 of the NHS [ii].  

Delving into the consequences of this unfair pay disparity, the report details how resulting high turnover rates of 26.5%, equivalent to 285,000 leavers a year, combined with vacancy rates of 9.4% or 112,000 roles [iii], are creating a cascade of far-reaching and negative impacts across society. This includes reducing quality of life for people who access or work in care, undermining the viability of care providers and the efficiency of the NHS, and constraining economic growth.  

Recent unfunded increases to employer National Insurance Contributions and the National Living Wage, totalling around £2.8 billion [iv], have further exacerbated the problem, creating financial strain on care providers, with many having to make difficult choices to hand back contracts to local authorities, or in some cases, leave the care market entirely.  

The cost of action – and inaction 

The release of Unfair To Care 2025 comes at a critical moment, as the Government reviews national social care policy, including proposals for a Fair Pay Agreement for care workers – acknowledging the urgent need for improved wages and the impact of low pay on the NHS.  

However, with the agreement not expected until 2027, at the earliest, we warn that delaying action will only deepen the crisis; exacerbating workforce instability, continuing to disrupt the lives of millions who depend on and deliver social care, and fatally undermining one of the Government’s three big shifts: moving care hospital to the community.  

Increasing social care pay is both achievable and essential 

We argue that immediate action is needed and that increasing social care pay is both achievable and essential.  

Within the report, we estimate that a 50p per hour uplift for the 1.29 million frontline care workers in England [v], would cost just £723 million per year (net) – a small proportion of the annual £32 billion in public spending on adult social care [vi], and a fraction of the recent £25.7 billion NHS funding boost in the Autumn 2024 Budget. In return, fair pay would reduce costly staff turnover, improve retention, and enhance care quality – benefiting the entire health and social care system. 

Our previous Unfair To Care reports have shown that providing parity of pay between social care workers and their NHS equivalents creates a ‘Social Care Triple Care Win’, improving economic growth, as lower paid workers reinvest additional wages in the local economy, increasing NHS capacity and efficiency, and transforming the lives of people who work in and draw on social care.  

Teresa Exelby, Chief Corporate Services & People Officer at Community Integrated Care, says: “Once again, this year’s figures highlight the persistent undervaluing of one of society’s most vital workforces. Social care support workers are highly skilled, accountable, and emotionally resilient, delivering transformational care and support every day.”  

“While steps toward a fairer pay framework are welcome, we cannot wait for 2027 for that to happen. That’s why we are urgently calling on the Government to fund an immediate interim pay uplift – not just because it’s the right thing to do for those working in and accessing social care, but because of the benefits it brings for wider society and the economy too.” 

“Within our charity we’ve seen the transformational impact of raising pay and investing in carers – achieving an 80% retention rate, which is above the sector average. This stability enables us to reinvest, expand our impact, and support our teams to deliver high-quality care, but sustained progress requires proper funding. With the right investment, social care can thrive – offering sustainable, rewarding careers, empowering people to live their best lives, and driving economic growth and productivity.” 

Phil Hope, former Minister of State for Social Care and co-author of the report, says, “A ‘Caring Economy’ is a two-way street – a strong economy funds the delivery of care and support, and the social care sector, in turn, drives economic growth and enhances NHS productivity.” 

“The sector is vast and expanding, contributing an estimated £62.1 billion to gross value added in England. Yet, despite its undeniable impact, improved care worker pay remains a contentious issue, often deemed unaffordable. This report not only challenges that perception but also highlights the substantial economic returns it can offer – reducing welfare spending, creating employment opportunities, and stimulating spending in low-income communities.” 

“In reality, the cost of increasing care worker pay could be far lower than assumed. Better wages lead to a more stable workforce, lower recruitment costs, and greater investment in training and innovation. It’s time to recognise social care spending as an investment in our economy and society – not just an expense.” 

References

[i] www.unfairtocare.co.uk

[ii] NHS Agenda For Change Pay Scale for 2024/2025 Band 3 roles

[iii] Figures used refer to ‘direct care’ filled roles and are taken from ‘The state of the adult social care sector and workforce in England’, Skills for Care, October 2024

[iv] Social care providers at risk of collapse as analysis reveals cost to sector of employer national insurance hike  | Nuffield Trust

[v] The number of ‘direct care’ filled posts as referenced in ‘The state of the adult social care sector and workforce in England’, Skills for Care, October 2024 – working an average 27-hour week, and including employer on-costs.

[vi] Social Care 360: Expenditure | The King’s Fund