Government introduced the Employment Rights Bill on 10th October 2024, marking a significant shift in workers’ rights. Government published an Implementation Roadmap in July 2025, stating that measures will come into force in stages from late 2025 until 2027.
A new Adult Social Care Negotiating Body and Fair Pay Agreement established by Government is expected to play a central role in setting pay and conditions in the sector. Government aims to bring forward regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body in October 2026. The body will be a platform for worker representatives in the sector to negotiate constructively with employers. It is hoped that fair pay agreements will help to make the sector a more attractive place to work and will retain more workers. Alongside this, Baroness Casey will continue her independent commission into adult social care, exploring how to build a care sector for the future.
According to Government, ‘Adult social care is a historically low-paid sector – most care workers are paid at or just above the National Living Wage. In 2023 to 2024 around 21% of posts in the adult social care sector were employed on zero-hours contracts, compared to 3.5% in the wider economy, and around half of the direct-care workforce held a relevant social care qualification.’ This Autumn, the measures Government will consult on include banning exploitative zero-hours contracts by enforcing guaranteed hours and fair notice. Other changes will include ending ‘fire and rehire’ practices, making such dismissals automatically unfair.
Dr Jane Townson, Chief Executive Officer at the Homecare Association, said earlier this year, ‘We fully support better protections for homecare workers, but the Committee’s report overlooks a fundamental reality in homecare – exploitation is driven primarily by inadequate funding and harmful commissioning practices in the public sector.
‘Zero hours’ working at low wage rates is directly caused by zero hours’ commissioning at low fee rates. […] Care workers deserve fair pay and secure employment, but employers simply cannot offer fair pay without a fair price for care. With a £1.8bn funding deficit for 2025-26, many providers face impossible choices that could lead to service reductions, business closures and disruption to vital care services.’
When Government introduced the Bill last year, Professor Martin Green OBE, Chief Executive of Care England, stated, ‘This Bill is a crucial step forward, but we must not lose sight of the funding necessary to bring these provisions to life. The Government must engage with care providers to establish a realistic pace for these reforms, ensuring that our sector remains viable and can continue to provide sustainable high-quality care. As the demand for care services grows, we must be proactive in developing solutions that support both care workers and the individuals who rely on them, as well as the viability of care provider organisations.’
For the care sector, there will be a financial impact due to requirements such as higher staffing costs (wages, sick pay, leave, redundancies) and a need to review HR policies and procedures. The size, scale and adaptability of the care provider may be relevant to how a provider copes with the changes – larger organisations may have the infrastructure to adapt, while smaller ones may struggle without support.
Because many provisions are under consultation or subject to secondary legislation, providers may find it hard to finalise changes early. While some changes may bring long-term benefits like improved staff retention and morale, the short-to-medium term impact may include financial strain, legal complexity and disruption to operations.
The proposed reforms are extensive and detailed regulations are awaited. Inevitably, the reforms will pressure providers who have been dealing with rising operating costs, staff shortages and increased regulatory demands. However, there are steps to take now to ease the burden: James Sage, HR and Employment Partner, RWK Goodman X: @RWKGoodman Email: [email protected]
claims and update internal HR processes.
The Employee Rights Bill is being implemented in a staged approach. The Bill is not finalised, with a number of elements subject to public consultation. However, it looks to have many employment law changes within it that will affect employers across all industries, as well as some changes that will particularly impact the care sector such as the Fair Pay Agreement for adult social care. The Fair Work Agency is a newly proposed Government agency to be established as a result of the Employment Rights Bill. It is expected in April 2026 and will be tasked with enforcing changes arising from the Bill. The message from the Government is clear – prepare now. With this in mind, there are three key areas I would recommend providers start thinking about if they are not already: Peter Norgate, People Director, Elizabeth Finn Homes Linkedin: @Elizabeth-Finn-Homes Email: [email protected]