William Eichler 11 June 2025

Spending Review: Chancellor vows to improve pay for social workers

Spending Review: Chancellor vows to improve pay for social workers image
© Ground Picture / Shutterstock.com.

The Chancellor has backed a fair pay agreement for social care workers in a Spending Review that failed to address many of the struggling care sector’s concerns.

Chancellor Rachel Reeves announced an increase to NHS funding of 3% a year, which means the health service gets £29bn extra a year.

The Spending Review also promised an increase in funding for adult social care of over £4bn in 2028-29 compared with 2025-26.

However, while she acknowledged that fixing the NHS means ‘delivering fundamental reform across social care’, there was little in terms of extra support for the struggling sector.

Following the Chancellor’s speech, Liberal Democrat treasury spokesperson Daisy Cooper called on the Government for more investment in social care.

Localis chief executive, Jonathan Werran, acknowledged the promise of £4bn for future years but said we would have to ‘reserve judgment’ until after Dame Louise Casey’s review of the social care system.

John Ramsay, founder and managing director of Social-Ability said: ‘On behalf of the social care sector, I’m once again disappointed by the Government’s lack of focus and meaningful reform. Shocked? No. The first-ever fair pay agreement is a step forward—but nowhere near far enough to fix a broken care system.’

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