Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, following the recent National Living Wage increase announced in the Budget, what assumptions have been made on future wage differential compression for social care workers currently earning just above the current National Living Wage.

When assessing National Living Wage (NLW) increases, we assume that individuals earning at or near the NLW will receive a pay increase equivalent to the full NLW uplift, whilst pay growth for higher earning workers will increase in line with forecasts for average earnings. This assumption is based on robust external evidence on the impact of increases in the NLW on pay in the United Kingdom labour market. However, employers are ultimately responsible for the implementation of NLW increases and impacts may therefore vary locally.

The Government is committed to transforming adult social care and supporting adult social care workers, turning the page on decades of low pay and insecurity. That is why we plan to introduce the first ever Fair Pay Agreement in 2028, backed by £500 million of funding to improve pay and conditions for the adult social care workforce. This represents the most significant investment in improving pay and conditions for adult social care staff to date.