Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, with reference to the press release entitled £500 million for first ever fair pay agreement for care workers, published on 30 September 2025, whether he has made an assessment of the potential impact of that policy on local government finances.
Answered by Alison McGovern
The £500 million funding for the Fair Pay Agreement is part of an increase of around £4.6 billion of additional funding available for adult social care in 2028-29, compared to 2025-26, and is part of the provisional Local Government Finance Settlement published on 17 December 2025. The Government has published an impact assessment of the Fair Pay Agreement, which outlines our best current summary of the evidence on potential impacts, costs and benefits, including on local government finances. The Impact Assessment can be found here.
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