What assessment has the Welsh Government made of the cost of a 1 per cent average increase in the pay of the employed social care workforce?
Welsh Government reviews social care workers' pay each year, as part of our commitment to paying the Real Living Wage (RLW), recognising their important role supporting vulnerable people in Wales.
The RLW has increased by far more than 1% annually in recent years. This policy was developed in 2022, with funding provided through the local authority settlement to address the difference between the National Living Wage (NLW) and the RLW. Consequently, a cost assessment of a 1% increase has not been required. For example, in 2025–26, the RLW increased by 5% and this change was reflected in the settlement allocation.
Improving pay for our social care workforce is a priority for government, and whilst work is now underway to implement Fair Pay Agreements (FPAs) in Wales through the UK Government’s Employment Rights Bill, these agreements are not expected to come into force until 2028. In the interim period, particularly over the next two years, we are committed to ensuring that the RLW policy is effective and delivering its intended benefits for the workforce.
The Social Care Fair Work Forum is also conducting work on a Pay and Progression Framework for the social care sector.