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Ministerial foreword

The social care workforce in Wales plays a vital role in supporting wellbeing, strengthening communities, and enabling people to live with dignity, independence, and security. Despite these crucial roles, our workforce continues to face low pay and inconsistent employment conditions across the sector.

I therefore welcome the UK Government’s legislation to introduce a Fair Pay Agreement process for the social care workforce as part of the Employment Rights Act 2025, allowing for the creation of a Social Care Negotiating Body for Wales. This is a significant step in creating a sustainable workforce. A Fair Pay Agreement offers a practical and principled approach to addressing these longstanding challenges, underpinned by the legal certainty required to effect meaningful change. Through consultation on a Social Care Negotiating Body (SCNB) for Wales we continue our journey to build a sustainable, long-term workforce and improve care services nationwide.

A SCNB for Wales would provide a structured forum, bringing together Trade Unions and Employer Representatives to negotiate constructively to establish fair, consistent and sustainable standards across the sector.

The SCNB will build on the strong social partnership foundations already established in Wales through our Social Care Fair Work Forum and Social Care Workforce Partnership. Between them, these groups have taken significant steps to improve fair pay, terms and conditions for the workforce. This includes advising and supporting on the implementation of the Real Living Wage for care workers, which Welsh Government has provided funding for since April 2022; the development of a Pay and Progression Framework for the independent sector; as well as the production of model core HR policies including Recognition Agreements and Disciplinary and Grievance, with the aim to bring consistency to terms and conditions across this sector.

Social care is a foundational economy sector, one that underpins daily life and supports the effectiveness of wider public services. Care workers enable timely hospital discharge, prevent avoidable admissions, support unpaid carers, and provide essential emotional, physical, and social support to our most vulnerable people.

I am proud that this government is driving this first phase of work in relation to Fair Pay Agreements, and your responses to this consultation are essential. They will help inform this important and ambitious step toward, recognising social care workers as the critical, skilled profession they truly are.

To our social care workforce, I thank you as always for your dedication and I am confident that this work will make a difference to improving pay, terms and conditions for this sector.

Background

Our dedicated and skilled social care workforce provides vital care and support to people of all ages and with diverse needs, including mental health conditions, children’s care services, physical disabilities, learning disabilities, autism and dementia. The committed people who make up the social care workforce are essential to those who draw on care and support, helping them maintain their quality of life, independence and connection to the things that matter most to them.

Yet social care is a historically low-paid sector. In Wales, the Welsh Government have gone some way to address this by providing additional funding to Local Authorities to pay social care workers the Real Living Wage (RLW). This additional funding is to bridge the gap between the National Living Wage and the RLW.

An independent evaluation of the RLW implementation, published on 22 October 2025, concluded that the policy has made substantial progress towards its goal of paying the RLW to social care workers in Wales, achieving a notable shift in pay equity during a time of unprecedented challenge for the sector. It found that 84% of respondents to the evaluation reported being paid the RLW and pay had improved for many social care workers, bringing them broadly in line with NHS Bands 1 and 2. However, it also found that not all of our social care workers are being paid the RLW and there is more to do to ensure this vital workforce are paid fairly.

The establishment of a SCNB will mark a significant shift, as it will enable enforceable Fair Pay Agreements for social care workers for the first time.

A fair pay agreement is an agreement that will set minimum standards for pay and terms and conditions, enforceable by law. The agreement in Wales will be reached through negotiation. To do this, we are introducing a form of sectoral collective bargaining in social care. This is the process where workers, represented by trade unions, negotiate with their employers to agree on pay, terms and conditions, and wider employment matters. 

Once the negotiated fair pay agreement is implemented, it will apply to all workers who are covered by the agreement, whether they are a member of a trade union or not. We are doing this at a national level, by setting up the ‘SCNB’

The SCNB will:

  • empower workers
  • strengthen the role of trade unions in the sector
  • ensure staff have the recognition and reward for the important work they do
  • boost productivity and improve living standards

The 2025 Act

The 2025 Act enables Welsh Ministers to set out the process for reaching a fair pay agreement in secondary legislation. The Welsh Government considers the provisions within the 2025 Act to be the most coherent and effective way to deliver this, ensuring parity of rights for the social care workforce across England, Scotland, and Wales. We strongly support the creation of a SCNB and have taken the decision to use the framework provided by the 2025 Act. We have secured powers through the Act that will afford Welsh Ministers the same powers as the Secretary of State, through secondary legislation, to:

  • establish a SCNB for Wales and set out how it will operate
  • make provision about the remit of the SCNB for Wales (for example, to specify additional matters relating to employment as a worker in the social care sector)
  • specify how matters are to be considered by the SCNBSCNB for Wales 
  • set out the process for dispute resolution
  • ratify the SCNB for Wales’s agreement, so that it is given legal effect and applied to workers’ contracts

This detail will be set in secondary legislation to allow flexibility for the government to engage with and consult the sector and the public on how the fair pay agreement process could work. The policy and details of the fair pay agreement process will be finalised following this consultation before being set out in secondary legislation. Secondary legislation will be subject to the agreement of the Secretary of State.

Overview

The sections below describe the components of the fair pay agreement process and set out some design options for each element in more detail. We are seeking views on important aspects of the design of the process so that we can be sure it enables constructive, meaningful and comprehensive negotiations between trade unions as worker representatives, and employer representatives, as well as protecting the vital frontline services that this sector provides.

We are also using the consultation to seek views on who should be covered by the first fair pay agreement and how the government can support implementation and compliance. For some of the stages, specific recommendations or options are set out, and for some we are seeking general views and insights on the issues at hand.

Social Care Negotiating Body for Wales

Social Care Negotiating Body for Wales

This section considers the establishment of the SCNB for Wales; and seeks views on how the SCNB could be set up to successfully create fair pay agreements and how the voice of workers and employers in the sector could be represented.

The SCNB will bring together trade unions and people representing employers to negotiate on pay, terms and conditions, and related matters. The coverage of the SCNB is discussed in more detail in section "Coverage and remit".

Other organisations, such as commissioners of care, will also be involved in this process.

Form of the SCNB

In Wales, we already have well-established networks and structures for consulting on social care policy, most notably the Social Care Fair Work Forum. The Forum has an independent Chair and brings together trade unions representing workers, social care provider representatives speaking for employers, and both local and Welsh Government. This collaborative approach has created a strong foundation for dialogue and action on improving terms and conditions across the sector.

Public bodies can take different forms depending on the functions they carry out. There are two types of public body that could potentially meet the needs of the SCNB. These are:

  • an advisory non-departmental public body (NDPB)
  • an expert committee

The relevant Welsh Ministers will formally approve key named organisations to sit on the SCNB and will appoint an independent Chair for either of the following options, however, it is proposed that there would be a more formal process in place for a non-departmental public body, with all members of the body needing to go through a formal Ministerial appointment process. 

Non-departmental public body (NDPB)

As an arm’s-length body, an NDPB provides ministers with impartial, expert advice on specific issues.

These are the defining characteristics of an NDPB with advisory powers:

  • relevant ministers (in this case the Cabinet Secretary for Health and Social Care and the Minister for Children and Social Care) are accountable for the NDPB but do not have direct involvement in its operations
  • they operate independently from government as they are designed to be free from direct political control
  • they are made up of independent experts, normally with a chair. Members are independent specialists, usually with staffing support from civil servants
  • members are appointed by the relevant minister and are accountable to the sponsoring department, in this case the Welsh Government
  • they do not have executive powers, their role is advisory.

Expert Committee

Expert committees provide independent specialist advice to government. They share many of the characteristics of a non-departmental public body, however, they operate as part of a government department, although they and the advice they provide is still independent. If the SCNB is established as an expert committee, it would sit within the Welsh Government. 

An expert committee providing independent specialist advice to government would build on our existing partnership approach and culture in Wales, which could ensure continuity in how stakeholders currently work together.

Supporting the SCNB

We are seeking your views on the support and infrastructure that the SCNB might need to create the conditions for a successful negotiation process.

Chair

The SCNB will need a chair to oversee the process, bring members together, lead meetings and ensure all voices are heard. The chair will ultimately lead the SCNB to put a fair pay agreement to the Welsh Ministers. 

The chair will support the SCNB through any points of contention but will not be expected to resolve formal disputes. If the SCNB fails to reach agreement, we propose a separate process for resolving this. This is outlined under section "Dispute resolution".

There are many characteristics the chair will need to be able to lead the SCNB effectively. These could include, but are not limited to:

  • a neutral party and can gain the confidence of members
  • a breadth of knowledge of the social care sector
  • experience managing, leading and navigating industrial negotiations, with an ability to assess conflicting opinions across a wide range of viewpoints to help form any proposed agreement
  • exceptional communication skills, able to quickly earn the trust and confidence of trade unions, employer representatives and any other parties to help resolve conflict in a constructive manner
  • experience as a senior leader with the ability to set clear direction and make strategic decisions

Secretariat

To help negotiations go smoothly, the SCNB will need a secretariat function. As with the chair of the SCNB, the secretariat will also have a role in managing relationships and will require the confidence of members. Staff appointed to the secretariat would support the chair by providing activities including, but not limited to:

  • minute taking
  • organising meetings
  • managing relationships with involved parties
  • drafting reports

In addition, we propose that the secretariat also has the capability to commission or carry out additional research and analysis, if required by the SCNB. This would help ensure that negotiations are based on comprehensive evidence and would support the SCNB to reach an agreement, by all members having a shared understanding of the evidence base. This will also be important to help the SCNB understand what is affordable and realistic to implement.

The proposal is for Welsh Government officials to provide the secretariat function for the SCNB. The purpose of this arrangement is to enable the SCNB to operate effectively and ensure continuity of administrative support, while also maintaining a basic level of understanding within government of how the body is progressing. The secretariat is not intended to influence or direct the SCNB’s decisions; rather, it is about facilitating its work and ensuring transparency and good governance as the body develops. The intention is to support, not steer, the SCNB, ensuring it has the resources and infrastructure to succeed.

Representation on the Social Care Negotiation Body

Social Care Wales’ “Have Your Say 2025 survey” estimates that there are approx. 82,000 people working in social care in Wales. Of the 5,707 who replied to their survey:

  • 69% reported being satisfied with their terms and conditions
  • 38% were satisfied with their pay
  • 47% of respondents found their current financial situation more difficult than the previous year
  • 45% felt they were managing financially

Social Care providers registered in Wales are spread across the private, public and third sectors, and deliver services for adults, children and young people across a range of different settings, service types and specialisms.

To enable successful negotiations, we need to ensure that workers and employers are fairly represented on the SCNB. The 2025 Act states that membership must include:

  • officials of one or more trade unions that represent the interests of social care workers
  • people representing the interests of employers of social care workers

In addition, the 2025 Act allows for persons of other descriptions to be appointed.

In the context of the 2025 Act, the definition of a “social care worker” is broad and it will be for the SCNB to determine which roles fall within scope of the Fair Pay Agreement that they are negotiating at that time, based on the remit letter they receive. Scope is covered later in this consultation. Key stakeholders are therefore trade unions representing the social care workforce and social care employer representatives.

While the SCNB will operate independently from the Social Care Fair Work Forum, these strong partnerships with sector organisations bring deep knowledge and experience of the workforce. The organisations represented on the Forum have consistently championed better terms and conditions, including pay, and their role has been to challenge government, when necessary, to secure improvements for the sector. The intention is for the same organisations to be represented within the SCNB, albeit this may be different individuals, ensuring that the SCNB benefits from their existing commitment to driving positive change for both workers and employers.

We propose that each bargaining side will have an equal number of seats and that each side will be responsible for determining how their portion of seats should be shared among themselves. Each side will set criteria for determining how their seats are shared. They will then submit membership proposals in line with these criteria to the Welsh Ministers for review and approval. More detail on how this would work is set out below. This will ensure that the voice of both groups can be heard equally. If other members are appointed, we propose that they are appointed as observers or advisers only, to ensure that negotiations remain between workers’ and employers’ representatives.

Worker representation

It is important that the worker representation on the SCNB can encompass a range of different unions and the workers that they represent, so that the breadth and diversity of workers in the sector can be represented.

TUC Cymru, UNISON, GMB, and the Royal College of Nursing are the trade union organisations that currently represent workers in social care on our Social Care Fair Work Forum. TUC Cymru are the umbrella body for 48 affiliated trade unions. We are therefore proposing two options for worker representation to reflect that TUC Cymru does not have independent membership of workers.

  • Option 1: Include TUC Cymru, alongside Unison, GMB and RCN
  • Option 2: Include only representatives of independent, membership based recognised trade unions: 
    • Unison, GMB and RCN with TUC Cymru acting as a convenor ensuring effective coordination and communications across trade unions within social care

These trade unions all have membership, recognition agreements and collective bargaining coverage across the sector and have been active in it for many years. 

Importantly for non-trade union members, it should be noted that:

  • recognised trade unions negotiate on behalf of all workers within a bargaining unit, not just their own members
  • FPAs apply equally to union and non-union workers, ensuring everyone benefits from the same terms
  • trade unions are democratically accountable to their members, which makes them well placed to act as a representative voice for workers
  • there is no organised, democratic, and accountable body that specifically represents non-union workers

The Welsh Government will decide the overall number of seats on the SCNB, an equal amount of which will be allocated to each bargaining side. The criteria has not yet been established but could include holding significant membership across the social care sector and having meaningful experience of collective bargaining. Membership of the SCNB will be reviewed regularly, to account for changes in the trade union landscape. The Welsh Ministers will review proposals and confirm in writing to trade unions the final agreement on SCNB membership.

Employer representation

Through continued engagement with our Social Care Fair Work Forum, we have explored different models of employer representation and developed the following proposal. 

Care Forum Wales and the National Provider Forum are the employer representative organisations that currently represent social care providers on our Social Care Fair Work Forum. We propose that the SCNB has an equal number of seats for worker and employer representatives, to ensure the voice of both groups can be heard equally. 

If social care staff employed by local authorities and the NHS are covered by the fair pay agreement, employer representation will include the Welsh Local Government Association and NHS Employers, as representatives of those parts of the workforce.  Section "Coverage and remit" of the consultation discusses this in more detail.

Membership will be reviewed regularly to account for changes in the employer landscape, to ensure it appropriately reflects the variety of size and specialisms in the sector.

Role of Local Government and the Association of Directors of Social Services (ADSS) as commissioners

Local government will play a vital role in implementing the fair pay agreement, given their responsibilities for the delivery of social care services under the Social Services and Well-being (Wales) Act 2014, and their role in negotiating provider fee rates and contracts, which ultimately influence workforce pay.  It is therefore important that local government, particularly in their capacity as commissioners, have a clear role in the fair pay agreement process. 

We are presenting two options for consideration in relation these roles:

  • Option 1: Full Membership for All Key Stakeholders to include:  
    • employers, trade unions, local government and ADSS

This option ensures all parties have a direct role in negotiations, reflecting the collaborative approach that has underpinned social partnership in Wales in recent years.

  • Option 2: Employers and Trade Unions as Core Members, with Local Government and ADSS in an advisory role.

Under this option employers and trade unions would form the core negotiating membership, with Local Government and ADSS on the board in an advisory capacity.

The rationale for this approach recognises their critical responsibilities for implementing Fair Pay Agreements, commissioning services, and negotiating provider fee rates and contracts, factors that directly influence workforce pay.

Importantly, social care workers employed directly by local authorities are already covered by national bargaining frameworks such as the National Joint Council (NJC) for Local Government Services, where terms and conditions are set out in the ‘Green Book’. Therefore, local government are already included in collective bargaining arrangements for that cohort of workers.

To ensure local government retains a strong voice in the process with this option, we propose a package of measures, including:

  • requiring the SCNB to consult with local government and consider their views as part of its remit
  • embedding local government’s role in the SCNB’s terms of reference and the responsibilities of the Chair
  • allowing local government representatives to provide Welsh Ministers with a written assessment of any proposed Fair Pay Agreement, which Ministers must give due regard to when deciding whether to ratify an agreement

Welsh Government

The Social Care Fair Work Forum recognised that Welsh Government, as the body responsible for setting national policy, purpose and direction, including overall funding, also has an important role in the process of fair pay agreements.

Our well-established partnership structures and approach, where trade unions and employer representatives work closely with Welsh Government on workforce-related policies, has built trust over many years. Stakeholders have expressed a preference for Welsh Government to have a presence as part of the SCNB, primarily in an advisory capacity and not a voting member. This ensures the negotiating body remains independent while benefiting from government insight and experience. 

Other members

As set out above, the 2025 Act allows us to appoint other members to the SCNB. We want to ensure that the SCNB is as representative of the social care sector as possible and that all interests are considered, so that the SCNB has the greatest chance of reaching a meaningful agreement. If others are appointed, we propose they are appointed as observers or advisers only, which will ensure that negotiations remain between workers’ and employers’ representatives.

We therefore want to understand whether you think there should be any other members of the SCNB as expert advisers, observers or in another distinct capacity.

Appointments process

As set out above, our proposals for worker and employer representation propose that:

  • bargaining sides will be responsible for determining how their proportion of seats should be shared among themselves
  • each side will submit membership proposals to Welsh Ministers for review and approval

It may be the case that worker or employer representatives write directly to the Welsh Government to express interest in being a member of the SCNB. If this happens, the Welsh Government will co-ordinate engagement with either the proposed trade union or employer representative groups to ensure all applications are considered.

When submitting membership proposals to Welsh Ministers, both the trade union and employer representatives should also submit details of any organisations whose applications have been rejected, along with the rationale.

The Welsh Ministers have the power to put conditions on appointments to help ensure representation is legitimate and covers as much of the sector as possible. We believe that it is important that the sector determines who is best placed to negotiate on behalf of its workers and employers, but this power is an important safeguard. Welsh Ministers may also terminate appointments.

There may be situations where an appointed member of the SCNB steps down or becomes unable to participate during negotiations. The relevant bargaining side would be able to write to the Welsh Ministers to seek to replace the member concerned, and the Welsh Government would endeavour to make a new appointment as soon as reasonably possible. However, any decisions taken by the SCNB are not affected by a vacancy. This would mean that, if a member steps down during a critical period of active negotiations, the SCNB is able to continue to put an agreement to the Welsh Ministers, and negotiations are not stalled by the appointment process. This would reduce delays.

Negotiation process

This section considers how the negotiation process could work. It proposes an approach and seeks feedback on whether this will help negotiations be successful.

Overview

Negotiations will work on a cyclical basis, mostly following the same set of steps each time.  Each cycle could concentrate on all possible things within the SCNB’s remit and all possible workers in scope, or a specific set each time, for example, one cycle might look at just care workers and baseline pay or annual leave.  The remit of the SCNB is discussed in detail under section ‘3. Coverage and remit’.

The main stages in negotiations will be:

  • The cycle begins, triggered by the remit letter sent from the Welsh Ministers to the SCNB.
  • The SCNB convenes and begins negotiations, this could include several stages such as:
    • sector engagement
    • understanding the existing evidence and gathering new evidence
    • negotiating to achieve a proposed agreement
  • Worker and employer sides of the SCNB consult their members on the proposed agreement.  Each side then confirms whether they agree or wish to negotiate further, depending on their members’ feedback.
  • The SCNB reaches a proposed fair pay agreement, or it fails to reach an agreement and is in dispute.  See section "Dispute resolution" for further detail.
  • The chair of the SCNB puts the negotiated agreement to the Welsh Ministers for ratification.  Under our proposals in section "SCNB",  this would be accompanied by evidence of how local government were consulted, and local government’s assessment of the outcome.The Welsh Ministers consider the agreement for approval. If approved, the Welsh Ministers may make regulations to ratify the agreement (In accordance with the 2025 Act the agreement of the Secretary of State is required to make such regulations) If not, the Welsh Ministers can refer it back to the SCNB for reconsideration. 
  • The new pay and terms and conditions come into force for all workers in scope of the ratified agreement.

The following sections of this consultation will describe each potential stage in more detail. For some of the stages, specific recommendations or options are set out, and for some we are seeking general views.

How negotiations would start

To support smooth negotiations and provide clarity from the outset, the Welsh Government’s proposal is that the Welsh Ministers issues a formal remit letter to the SCNB to commence each cycle of negotiations. This remit letter will provide an opportunity for government to set any funding and any potential priorities or specific considerations for an agreement.

We propose that the letter to the SCNB sets out:

  • Any priority areas that the Welsh Government would like to be considered, which could include specific roles or pay and terms and conditions. The intention is to provide the SCNB with broad flexibility. There may be exceptional circumstances where the remit letter sets boundaries on certain areas of coverage and remit.
  • Any other factors that the SCNB should consider or conditions the agreement must meet. This would include an indication of anticipated funding for that round of negotiations, and which the SCNB would need to work within.
  • The timelines by which the SCNB should aim to reach an agreement and submit this to the Welsh Ministers.

How negotiations would work

Once the SCNB has received the Welsh Government’s letter, it will be able to commence negotiations, led by the chair and supported by the secretariat.  Before the negotiations begin, the SCNB, supported by the secretariat, may wish to conduct a period of engagement and evidence gathering to understand the sector and existing landscape.

The SCNB will have the freedom to approach negotiations as they see fit, within the parameters set by the remit letter. It will together decide how to approach:

  • discussing which roles and elements of pay and terms and conditions are to be in scope for this cycle see section "Coverage and remit’ for more detail")
  • incorporating the priorities set out in the Welsh Government’s letter
  • agreeing which items are affordable

Led by the independent chair, the SCNB will work through all the issues at hand to reach a draft agreement.  Once a draft agreement is on the table, each bargaining side will be responsible for consulting its own members and relevant organisations to determine whether the agreement should be accepted and put to the Welsh Ministers for approval.

If the SCNB is unable to reach an agreement, it is important to have a clear dispute resolution process to work through issues and support the group to reach an agreement. Our proposed approach to this is detailed in section "Dispute resolution".

It is possible that the SCNB could fail to reach agreement even after exhausting the dispute resolution process.  If this happens it is important to have a mechanism to improve pay and terms and conditions for workers.  The "Implementation" section sets out what would happen in this circumstance.

The chair will lead the SCNB to develop its own terms of reference, setting out how it works. This could include a code of conduct, setting out expectations for how negotiations are conducted and how to continue work in cases where some matters are harder to agree on than others. This would be a helpful tool to establish good working relationships between members and a culture for successful negotiations. 

One role of the chair will be to ensure that the SCNB follows its agreed terms of reference. The Welsh Government may also work with the chair, if required, to hold members accountable.

How the SCNB would reach a decision

The 2025 Act gives Welsh Ministers the ability to define how the SCNB reaches an agreement.  We propose that for an agreement to be considered agreed and ready for submission to the Welsh Government, it simply needs both sides to agree to it and inform the chair. We believe that self-determination is important and therefore we propose that the Welsh Government does not define in detail how each bargaining side reaches an agreement.

The questions within this consultation have been developed in collaboration with our key stakeholders through   our Social Care Fair Work Forum. Both trade unions and employer representatives would be responsible for arranging their own decision-making mechanisms. Both groups should aim for consensus but may take a vote if this is not possible.

Timelines

Frequency of negotiations

To provide clarity to the sector and to balance the need to remain responsive to economic developments while giving stability for employers, the Welsh Government proposes that fair pay agreements are negotiated on an annual basis as standard practice.  Each cycle of negotiations may concentrate on different issues, for example it may choose to negotiate pay and terms and conditions for specific social care roles, or different terms and conditions such as training, holiday pay and so on, depending on what is in the remit each cycle.

The Welsh Ministers could also choose to fund an agreement that covers several years, by setting this out in the remit letter.

Timeline for negotiations

Within the proposed annual cycle, we need to consider how much time to allow for negotiations, how to align timelines with local government and employer budget setting, and to allow enough time for implementation.  Implementation includes:

  • time for the Welsh Ministers to consider the proposed fair pay agreement and make regulations to ratify it
  • following ratification, time for the sector to prepare for the fair pay agreement coming into effect in workers’ contracts. Implementation is explained further under section "Implementation"

We propose that to ensure we strike this balance we should allow around 6 months for negotiations, leaving 6 months for implementation.

We do not propose that if an agreement is not reached by this point, then negotiations will come to an end with no resolution available.  Instead, we are proposing that this is the time we plan for and that the SCNB and the Welsh Government will keep in constant contact to review the progress made and adjust plans as needed.

Coverage and remit

While members of the SCNB will negotiate what is in the fair pay agreement, ahead of negotiations, we need to define what and who can be considered in the first place. This section seeks views on different areas of pay, terms and conditions, and wider employment policies. It also seeks views on who the SCNB should cover, including the type of job roles, services and settings.

Background

The social care workforce in Wales is large and diverse. It provides several essential services such as residential care, day care, domiciliary, community and health services. Within these, there is a variety of job roles such as:

  • direct care roles, including care workers in both adults and children’s services and personal assistants
  • managerial roles
  • regulated roles like social workers, nurses and occupational therapists
  • ancillary roles and others

The 2025 Act uses "remit" to consider both the workers who are in scope, and the matters that the SCNB will consider. For this consultation, we’re using 2 important terms:

"Coverage" refers to which roles in the workforce should be included in the scope of the SCNB. We are seeking views on whether this should include all social care workers or be limited to specific roles or professions, and whether any roles should be excluded from the SCNB’s coverage.

"Remit" refers to the matters the SCNB should negotiate. We are seeking views on whether this should, in addition to pay and terms and conditions, also include wider employment policies such as training and development, policies relating to health and safety, and more.

Defining the coverage of the Social Care Negotiating Body

The meaning of ‘social care worker’ (for the purpose of chapter 2 of part 3  of the 2025 Act) is set out in section 41 (1) (b) and in so far as it relates to Wales means “a person who is employed wholly or mainly in, or in connection with, the provision of social care to any individual”.

The meaning of ‘social care worker’ in the 2025 Act is intentionally broad the 2025 Act provides the Welsh Ministers with power to by regulation refine this definition to a more specific subset of social care workers in the SCNB’s remit. Being within the SCNB’s remit does not mean that all elements of each fair pay agreement will apply. Ultimately the details of fair pay agreements will be subject to the remit letter set by Welsh Minister, negotiations, the decision of the SCNB and other factors.

Checking whether a worker falls within coverage of the Social Care Negotiation Body (SCNB)

It is the responsibility of the employer to check whether the majority of their worker’s (or agency worker’s) time is spent on activities related to social care. We think in most cases it will be straightforward to check. However, we understand that employers of workers in social care may sometimes find it difficult to check whether their worker fits within the definition of a social care worker, particularly if they work across different care settings or sectors such as education or health. We will therefore share guidance in due course to help employers understand if their workers are covered by the SCNB.

Role categorisation

We are setting out the following categorisation to articulate the roles that may be covered by the SCNB. This categorisation will also be used to inform the specific scope of negotiations, where the SCNB may choose to concentrate on specified roles instead of the workforce at large.

The social care workforce delivers several essential services where workers may be covered by the SCNB, such as:

  • residential care
  • day care
  • domiciliary
  • community
  • health services

Within these, there are several job roles, such as:

  • direct care roles, including:
    • care workers
    • senior care workers
    • personal assistants
    • agency workers
    • other direct care
  • managerial roles, including:
    • supervisors
    • middle managers
    • senior managers
    • agency workers
  • regulated professions, including:
    • nurses
    • occupational therapists
    • social workers
    • agency workers
    • other regulated professions
  • other roles, including:
    • ancillary roles
    • administrative roles
    • agency workers

Excluded sections of the workforce

Care delivered by the self-employed or under informal arrangements

Fair pay agreements apply to the paid social care workforce, therefore do not cover unpaid carers. There are also parts of the paid workforce that are not within the SCNB’s coverage. Specifically, those who are self-employed or working under informal care arrangements. This is because they are not covered by the definition of ‘social care worker’ set out in the 2025 Act.

Many require self-employment for the flexibility it allows, including in setting their own pay and terms and conditions. Those individuals do not work to terms and conditions set by an employer. It therefore would not be appropriate for negotiations on pay, terms and conditions, and other employment matters to include these groups. 

We understand that many will be concerned about the effect this might have on individuals who are self-employed or working under informal arrangements. We want to understand any potential effects on these groups being out of the SCNB’s coverage. 

Areas of the workforce to note

Care sector workers employed by local authorities and the NHS

The 2025 Act allows for all social care workers - other than the self-employed - to be covered by the SCNB.  This includes those employed predominantly in the provision of social care by the NHS or local authorities, such as nurses, occupational therapists, social workers and healthcare assistants.

The Welsh Government’s intention is to give this fragmented sector a much-needed national infrastructure, providing the opportunity to standardise existing best practice and formalise routes for the workforce to access better pay, terms and conditions, and career and development opportunities.

However, it may not be appropriate for the SCNB to cover some areas of the workforce because of unique factors.  We are seeking views on whether social care workers employed directly by local authorities or the NHS should be covered by the SCNB.  These workers are usually already covered by other national bargaining frameworks or pay setting processes, typically:

  • the National Joint Council (NJC) for Local Government Services, where terms and conditions are set out in the ‘Green Book;’
  • the Agenda for Change (AfC) contract, where the AfC Staff Council typically negotiate on non-pay issues; and
  • the NHS Pay Review Body, which provides headline recommendations for pay uplifts for NHS staff when remitted by the Welsh Government.

Workers can be covered by both the SCNB and another bargaining process or pay setting process (such as individual workplace negotiations). In such a scenario, a worker would retain their contract as agreed by their original collective bargaining process. When a fair pay agreement is agreed, the 2025 Act sets out that the relevant worker will benefit from the most generous pay or terms and conditions (either in their current contract or what is set out by the SCNB). This would not affect the contracts of those workers within AfC or the NJC who are not covered by the SCNB.

However, workers being in multiple processes that determine pay and terms and conditions could add complexity to their existing processes, including the NJC and AfC. This might have an impact on the NHS or local government in relation to cost, industrial relations and recruitment, and it might increase the risk of a perceived ‘2-tier system’ within the NHS and local government (that is, between those not covered by the SCNB and those who are).

It is the intention that the SCNB will have a fixed funding envelope, it therefore may be preferable to concentrate resource and efforts, at least in the medium term, on improvements for those not covered by an alternative process. This is also a decision the SCNB can take.

Alternatively, including all those who predominantly work in social care regardless of whether they are covered by another process could support the unification of the workforce and the standardisation of training, standards and delivery of care across the country. In cases where the SCNB agrees preferable terms on a specific matter compared with AfC and NJC, this could allow workers to benefit from multiple processes and could strengthen recruitment and retention in social care.

This is a complex issue and so, alongside this consultation, the Welsh Government is exploring how this could work in practice with consideration to the effects, risks, and challenges that might arise. We are particularly interested in hearing from employers and workers associated with these processes, or those who have had experience delivering them.

Agency workers

Under the 2025 Act, temporary staff, including agency workers and bank staff, are covered by the SCNB.  Many providers use temporary staff to provide flexibility in meeting variable demands for care, including sometimes high reliance on indirectly employed registered nurses, support and outreach workers, care workers and social workers. As the use of temporary staff is frequent in social care, the Welsh Government’s view is that it is appropriate for both agency and bank staff to be within coverage of the SCNB.

Cross-border workers

The 2025 Act allows for the creation of individual negotiating bodies in each of England, Scotland and Wales by their respective governments, recognising that social care is funded and delivered separately in each.  This will allow for separate fair pay agreements to be negotiated and agreed in each nation and ratified by their respective ministers and Parliaments. 

In England, Scotland and Wales there are some care workers who operate across borders, for example providing care to people in both Wales and England. These workers could therefore be covered by more than one fair pay agreement. We intend to clarify this in secondary legislation.

The 2025 Act sets out that a worker would be covered by any nation’s fair pay agreement for the number of hours they work in that nation. The UK Government set out an example where:

a social care worker provides care in England and Wales under a single employment contract for 38 hours a week in total, 20 hours in England and 18 hours in Wales. This would see that worker receive pay and terms and conditions as set out in any fair pay agreement in England for 20 hours and the same under any fair pay agreement in Wales for 18 hours.

This proposal would put the onus on employers (and workers) to consider what hours are covered by the fair pay agreement process in Wales or England, once established. This raises the potential unintended consequences for cross-border care workers and providers at the point a fair pay agreement is ratified and implemented. This could include challenges such as:

  • staff choosing to work in a different nation for better pay or terms and conditions
  • more complicated operations for providers operating across borders

In England, Scotland and Wales the respective governments can specify in secondary legislation which workers will be covered by their negotiating bodies. Making changes to the bodies’ coverage could provide clarity to employers and workers by ensuring that a social care worker is only covered by a fair pay agreement in just one nation according to criteria such as the place where they spend most of their time working.

Informing the remit of the Social Care Negotiation Body (SCNB)

The 2025 Act sets a remit for the SCNB to negotiate matters that relate to:

  • the remuneration (pay) of social care workers
  • the terms and conditions of employment of social care workers
  • any other matter related to employment of a social care worker, which must be specified in regulations

This section of the consultation seeks views on different elements of pay and terms and conditions, as well as other employment policies (such as training and development, policies on people and culture, and additional benefits and financial incentives, for instance) that could be part of the SCNB’s remit.

Answers to the consultation questions will be important information for Welsh Ministers, considering their role in providing information to the SCNB at the start of negotiations. Section "Implementation" considers how these areas will be implemented and reflected in workers’ contracts or working arrangements.

Pay and terms and conditions

Pay is generally remuneration received for work performed as an employee or worker in the form of salary or wages. Terms and conditions are a worker’s contracted terms, usually set out in writing. There is some overlap here, particularly with elements like holiday, sick pay and pensions. For the purposes of the consultation and the fair pay agreement, we view these as terms and conditions. We are not intending to limit the areas within pay and terms and conditions that the SCNB can negotiate on within regulations.

We are seeking views on which elements of pay should be prioritised by the SCNB, such as a sectoral minimum wage, pay scales or one-off payments, for instance. We are also interested in which terms and conditions should be considered a priority. This will inform the remit letter issued by the Welsh Government setting out any priority areas that the government would like to be considered in each round of negotiations. The answers can be considered against other information sources such as the Social Care Wales annual “Have Your Say” survey, on top of any additional evidence-gathering led by the SCNB to inform negotiations.

The 2025 Act ensures that anything agreed by the SCNB, and then made effective by the Welsh Ministers, will not have the effect of lowering worker’s pay, or reducing any of their terms and conditions. It also delivers an improvement in employment rights for all workers, including strengthening statutory sick pay and introducing rights to guaranteed hours, which are particularly relevant for all social care workers.

Dispute resolution

Background

The Welsh Government’s aim is to support the SCNB to establish a positive culture and way of working that allows for an agreement that is endorsed by all parties. However, during the negotiations, competing interests and priorities between representatives on the SCNB may lead to situations where negotiations are unable to continue. This is known as a dispute. The 2025 Act gives the Welsh Government the ability to establish a dispute resolution process for the fair pay agreement negotiations.

Other collective bargaining processes typically have a dispute resolution process in case it is needed - but these are not always used. Having a clear process to help the SCNB work through conflicts minimises the need for Welsh Ministers to intervene.  More detail about when the Welsh Ministers may need to intervene if the SCNB fails to reach agreement is outlined in section "Implementation".

We have developed a proposal through collaboration with the Social Care Fair Work Forum, providers, local government and others. We are seeking views on this as part of this consultation. This includes:

  • what should be classed as a dispute
  • how the dispute resolution process should be triggered
  • who should be involved in this process

What a ‘dispute’ is

A dispute is when the ASC Negotiating Body cannot reach a consensus on a package of measures and the negotiation has reached a stalemate and it cannot continue. A dispute will be between opposite sides of the SCNB only.

Any points of contention within the worker representative group or within the employer representative group should be resolved without involvement from the wider SCNB.

Disputes are distinct from points of contention, which are a normal part of a negotiation process.

Triggering a dispute

We propose that the chair should aim to resolve points of contention first, as part of the normal course of their duties. We believe that the chair is also best placed to identify where negotiations cannot continue and that the chair should declare a dispute once they feel that they cannot do any more to find a solution.

It will be important for members of the SCNB to agree that negotiations require the dispute resolution process, to ensure participation. We propose that the chair should judge whether there is consensus, and if this is in doubt, they could call for a vote to trigger the process. We suggest that, if this vote is called, it must have a majority (50% plus one member) of both employer and worker sides of the SCNB to ensure the majority agree to start the dispute resolution process.

Resolving a dispute

Once a dispute has been triggered, we propose that an independent third party becomes involved to work with the SCNB to help them reach an agreement. This would ensure the process is independent from government and allows the SCNB to engage appropriate experts with relevant experience. Using an independent third party is best practice for dispute resolution as seen in other collective bargaining processes.

The Welsh Government’s proposal, discussed with the fair pay agreement working group, is that the Advisory, Conciliation and Arbitration Service (ACAS) should be the designated body to resolve any disputes arising from the SCNB. ACAS’s role would be set out in secondary legislation, and this would enable ACAS to lead with confidence and provide clarity over the dispute resolution process.

ACAS can assist in the way most appropriate to the dispute in question. They have several methods available, including:

  • conciliation: conciliation would likely be the first step of the dispute resolution process, aiming to find a solution that everyone finds acceptable. This would be carried out by ACAS’s own collective conciliators. 

The conciliator would be an impartial and independent third-party expert who works with the parties in dispute to support them in finding common ground for building a resolution. The work would be done through a series of meetings and involve a blend of group conversations or one-to-one conversations between the conciliator and the parties.

  • mediation: collective mediation arises after the collective conciliator has worked with the parties and, together, they have identified this is the best approach. 

The mediating third party would fall short of making a decision, instead working with the parties to develop clear recommendations for them to resolve their dispute. This would use an independent and impartial expert from the ACAS register of arbitrators. 

We propose that the chair, the SCNB and ACAS work together to decide which methods are appropriate based on the nature of the dispute. By not defining the methods of dispute resolution in advance, or in secondary legislation, this would allow for flexibility and greater control for the parties involved.

Implementation

This section sets out what happens once the SCNB has reached an agreement. It also explains what happens if an agreement is not reached. These processes are already defined in the framework of the 2025 Act.

This section also considers preparation for the implementation of a fair pay agreement and seeks views on what we can do to support the sector to be ready.

What happens when the SCNB has reached an agreement.

Once the SCNB has reached an agreement, steps will be taken to give the agreement legal effect and make it part of workers’ contracts.  The stages are:

  • review: where Welsh Ministers, alongside other parts of government, reviews the proposed fair pay agreement to ensure it is affordable and deliverable
  • reconsideration (if required): following review, the Welsh Ministers can either accept the agreement or ask the SCNB to reconsider and make changes
  • ratification: the act provides that an agreement may be ratified through the making of regulations. It is also of note that any regulations require the agreement of the SoS

These stages are explained in greater detail later in this section.

We know that it is vital to ensure that the sector, particularly employers, workers and commissioners, are aware of these changes and are ready to implement them. This section seeks views on the guidance and communications that could support this.

Review

After the SCNB has reached an agreement, they will need to submit this agreement to Welsh Ministers. The Welsh Ministers will then review and decide whether it is affordable and deliverable before accepting it. This review could include analysis to independently verify costings.

Officials and the Welsh Ministers may also seek views from other Welsh Government and UK Government departments with a direct interest in the fair pay agreement, including:

  • Health, Social Care and Children and Young People (Welsh Government)
  • Local Government Finance, Policy and Sustainability (Welsh Government)
  • Welsh Treasury (Welsh Government)
  • Department of Health and Social Care (UK Government)
  • HM Treasury (UK Government)
  • Department for Business and Trade (UK Government)

Reconsideration

The Welsh Government believes that representatives are best placed to negotiate a fair pay agreement for the sector, but it is important for government to ensure that the negotiated outcome can be successfully implemented.

Therefore, following the review stage, Welsh Ministers can either accept the agreement or in rare circumstances ask the SCNB to reconsider and submit a revised agreement.  Some examples of why Welsh Ministers may ask the SCNB to reconsider the agreement are:

  • Affordability: the Welsh Government must ensure that the fair pay agreement is affordable and therefore may ask the SCNB to reconsider if it proposes an agreement which is deemed to be unaffordable
  • Missing an element of the Welsh Government’s remit letter: if something Welsh Ministers laid out in the remit letter has not been considered in negotiations, Welsh Ministers may ask for the agreement to be reconsidered.
  • The role of local government: as we propose that the SCNB must have regard to the views of local government representatives throughout negotiations, Welsh Ministers may refer the agreement back if this has not been the case.
  • feasibility: The Welsh Government must ensure that the fair pay agreement can be implemented on the ground, but there may be wider changes that influence the social care sector. For example, in employment law. This may result in an agreement being sent back to the SCNB for reconsideration.

Ratification

The Welsh Ministers may make regulations ratifying the agreement in full, or to the extent specified in the regulations (the making of such regulations requires the agreement of the SoS). 

Ratification is the legal process that incorporates the fair pay agreement in workers’ contracts, if it relates to pay and terms and conditions. Any terms or conditions in the workers’ contracts that are contrary to the agreement are automatically overwritten. This means that from the day the regulations come into force, or another date specified within those regulations, the fair pay agreement becomes automatically enforceable within workers’ contracts.

The only exception is that ratification does not give effect to an agreements’ changes to existing terms or conditions (including pay) in a contract if they would be to a worker’s detriment. This means that if part of the fair pay agreement was less favourable than a care worker’s existing pay and terms and conditions, for example,giving fewer days of annual leave, then that part would not apply to their contract.  Employers are still free to offer more favourable terms.

For example:

A worker retains their existing contract. Once a fair pay agreement has been ratified:

  • where the ratified agreement relates to a social care worker’s pay, this will become the social care worker’s pay unless this would be less than their existing pay, in which case the social care worker will retain their existing pay or
  • where the ratified agreement relates to another term or condition of a social care worker’s employment, these will become terms and conditions of their employment unless this would change an existing term or condition to the social care worker’s detriment or
  • where the ratified agreement does not mention a particular term or condition (including pay) of a social care worker’s employment, the social care worker will retain their existing term or condition

These changes will take place automatically as a result of ratification. Employers may need to take steps in response to ensure they comply with the new pay and terms and conditions, including paying their workers in accordance with the ratified agreement.

Section "Compliance and enforcement" will discuss the mechanism for ensuring employers are complying with this ratified agreement and that workers have routes to complain if this is not the case.

Ratification is predominantly a Senedd process, which starts with a public announcement that the fair pay agreement is accepted.  This could be through a written ministerial statement, which is a written statement made in the Senedd that puts the ministerial acceptance of the agreement on the public record.  This is also the start of the communication and implementation period (see "Communications, guidance and codes of practice’ later in this section). 

Regulations will be made through the Senedd annulment procedure and require the agreement of the Secretary of State to ratify the agreement - meaning only in rare circumstances will it be debated in Plenary session in the Senedd or by a committee.

In rare circumstances the government may backdate the agreement. This should only be for a limited amount of time, for example to account for delays in the Parliamentary process and will be communicated ahead of time.  There may be parts of the fair pay agreement that are not well placed to be in employment contracts, for example, the wider employment matters proposed. Where this happens, statutory guidance or codes of practice may be issued instead to bring those parts of the agreement into effect. This is discussed in more detail later in this section.

Reporting

Once Welsh Ministers have accepted an agreement, it will be important to ensure that the sector is clear on the terms of the new agreement and understand how this was decided.

The 2025 Act gives Welsh Ministers the ability to ask the SCNB to publish reports. We propose that the SCNB, supported by the secretariat and the Welsh Government, produces a report after the ratification of each fair pay agreement.  This report would set out the terms of the new fair pay agreement and summarise the evidence the SCNB considered.  This report would be publicly available on Gov.Wales.

Failure to reach an agreement following dispute resolution

It is possible that the SCNB could fail to reach agreement even after exhausting the dispute resolution process.  If this happens, it is important to have a mechanism to improve pay and terms and conditions for workers.

The 2025 Act creates a way to do this, giving Welsh Ministers the ability to make a determination on pay and terms and conditions to create a fair pay agreement. A ‘determination’ is a decision made by someone who has the legal authority to do so, namely the Welsh Ministers.

The Welsh Ministers could only make a determination covering the matters originally referred to the SCNB in the remit letter.  If a determination is made, it would be ratified through the Senedd approval procedures.  This means that ratifying a determination would require more scrutiny than ratifying an agreement reached by the SCNB and it would require the Senedd to debate and approve it.

Communications, guidance and codes of practice

Overview

It is vital for us to communicate the changes brought on by the fair pay agreement widely, so workers, employers, local authority commissioners and the sector at large are ready for these changes and know what it means for them. As outlined above, it may not be possible to incorporate some terms of a fair pay agreement, for example, things like a new workplace disciplinary and grievance policy, into workers’ contracts. If this is the case, guidance or a code of practice could be issued.

Regulations could be made to impose duties on organisations and individuals in relation to guidance and codes of practice. The regulations could also set out consequences for not complying with these duties, which could include enabling a court or tribunal to take the breach into account when determining relevant claims and, accordingly, increasing the amount of any compensation it awards to the other party.

Communications and guidance for sector readiness

In addition to statutory guidance, specifically related to elements of the fair pay agreement as described above, we may want to consider a wide range of communications and guidance to support the sector as a whole and ensure everyone is ready for implementation of an agreement.  It is important that these pieces of guidance are developed with those who are affected by the agreement. This includes:

  • Social care workers: so that they understand the new rights they are getting because of the fair pay agreement and can ensure their employer is compliant. Section "Compliance and enforcement" covers this in more detail
  • Employers and managers of social care services: so that they can implement the fair pay agreement in their services (for example, supporting them in assessing whether any changes to terms or conditions made by a ratified agreement would be to a worker’s detriment, and whether contracts should be updated). We are conscious that individuals who directly employ social care workers may need additional support when implementing a fair pay agreement. We will work with the sector to ensure that the communications and guidance are in place to support individuals to implement an agreement; and
  • Commissioners of social care and local authorities: to provide information about how the commissioning of social care can support the implementation of the fair pay agreement.

We know that it is important that any guidance and communications produced are easily accessible to the sector, easy to understand and do not duplicate or contradict any existing resources. It is also vital that guidance is communicated to the widest possible audience. We plan to work with the sector to achieve this. This will include members of our Social Care Fair Work Forum, which includes trade unions, employer representatives and local government, as well as other organisations as appropriate within the social care sector. 

We propose that these pieces of guidance be co-produced and co-published by the SCNB and the Welsh Government, with input from other parts of government where appropriate. We will consider ways to support ease of access including, but not limited to, the Welsh Government hosting a central webpage for all guidance related to the fair pay agreement.

Compliance and enforcement

Employers will be responsible for ensuring that they comply with the terms of a fair pay agreement.  From the point that regulations ratifying an agreement come into effect, the fair pay agreement becomes enforceable in workers’ contracts. Guidance and codes of practice will also be issued setting out duties in relation to fair pay agreements. Providers will ultimately be responsible for ensuring that they are adhering to the terms of a ratified fair pay agreement.

As set out in the National Commissioning Framework for Care and Support, local authority commissioners of care have a parallel responsibility to consider the pay and terms and conditions offered to staff employed by care providers from whom they commission services, through their negotiating of provider fee rates and contracts.

How government will support providers and commissioners to comply with a fair pay agreement

As mentioned in section "Implementation", the 2025 Act enables Welsh Ministers to make regulations about the issuing of guidance and statutory codes of practice. Regulations may impose duties on organisations related to the guidance and codes of practice. Regulations may provide that if these statutory duties are not followed, they may be considered by an employment tribunal when determining a financial award by the tribunal.

The Welsh Government’s view is that guidance or statutory codes of practice are necessary to support groups to comply with the fair pay agreement. The Welsh Government intends to use these to support fair pay agreement compliance in the following ways:

  • Using guidance to explain what the terms of the fair pay agreement mean, how the fair pay agreement affects workers and employers and the actions they need to take. For example, setting out how an employer should assess whether a worker’s existing contractual terms and conditions are better or worse than those in a ratified fair pay agreement, and how they should update their worker’s contract; or
  • Using codes of practice to outline what the government expects employers to do. The Welsh Government also has other levers available, including powers in other pieces of legislation outside of the 2025 Act.

Enforcement

We know that it is vital to ensure that workers in scope of a fair pay agreement are receiving the pay and terms and conditions they are entitled to under a fair pay agreement, and that there may be cases where workers do not receive those rights.  As such, it is important to have appropriate enforcement regimes in place to investigate any breaches and so that workers have routes to complain if they feel that they are not receiving their rights.

Currently, it is up to the individual worker to enforce their contractual employment rights by pursuing a complaint against their employer over a breach of contract of employment or an unlawful deduction of wages. This applies across all sectors in the economy, including social care. Trade unions also have an important role in helping to solve workplace disputes and grievances, as well as advocating for workers’ rights.

The typical first step for a worker is to try and resolve a contractual dispute informally within the workplace or by initiating the employer’s formal grievance process. In addition, workers can seek support from bodies such as ACAS that give workers and employers free, confidential and impartial advice on workplace rights, rules and best practice and provide early conciliation services. If the dispute is not resolved, a worker can make a claim with an employment tribunal or start civil court proceedings.

The Fair Work Agency (FWA), which will be established under the 2025 Act, will be responsible for enforcing certain labour market legislation, including the pay elements of a ratified fair pay agreement.

The FWA will bring together existing state enforcement functions (including the NMW enforcement functions of HM Revenue and Customs (HMRC), Gangmasters and Labour Abuse Authority (GLAA) and Employment Agency Standards (EAS) Inspectorate) and, over time, take on enforcement of a wider range of employment rights such as Holiday Pay and Statutory Sick Pay. The FWA will provide better support to businesses on how to comply with the law and will take tough action against rogue employers who exploit their workers.

Currently, HMRC enforces the NLW and NMW on behalf of the UK Government’s Department for Business and Trade.  If employers are found to be breaching the NMW or the NLW, HMRC can recover unpaid wages and impose fines. HMRC can also refer cases on to the Department for Business and Trade for consideration in their naming scheme, which publicly names non-compliant businesses.

The FWA may enforce remuneration under a fair pay agreement using the Notice of Underpayment (NoU) regime, which is similar to how the NMW and NLW are currently enforced. The process of the NoU regime is as follows:

  • If an employer has failed to pay any workers the correct amount under a statutory pay provision, an FWA officer may issue an NoU, which requires the employer to pay the workers the money they are owed. The NoU must also require the employer to pay a penalty of 200% of the arrears, with a minimum penalty of £100 and maximum penalty of £20,000 per worker.
  • If an employer, within 14 days of being given the NoU, pays at least 50% of the penalty and pays the worker the amount owed, the penalty is regarded as having been paid in full.
  • The employer may appeal against the NoU within 28 days of being given the NoU and
  • If an employer does not comply with the NoU, FWA can start civil proceedings to recover amounts

The FWA will use records that employers currently keep under the National Minimum Wage Act 1998 to support its enforcement approach. The 2025 Act also provides a power for Welsh Ministers to make regulations requiring employers to keep and preserve certain records and this power may be exercised to support fair pay agreement enforcement.

Individual enforcement routes, such as ACAS and employment tribunals, will continue to be available to workers in respect of breaches of remuneration and non-remuneration related terms and conditions that are incorporated into worker contracts by a fair pay agreement.

Consultation Questions

Question 1

In what capacity are you responding to this survey?

Question 2

What is your age? (Optional)

Question 3

What is your sex? (Optional)

Question 4

Is the gender you identify with the same as your sex registered at birth? (Optional)

Question 5

What is your ethnic group? (Optional)

Question 6

Do you (or does anybody in your immediate family) currently draw on support for a long-term care need?

Question 7

Excluding anything you do as part of your paid employment, do you look after, or give any help or support to, anyone because they have long-term physical or mental health conditions or illnesses, or problems related to old age?

Question 8

Where do you live in the UK? (Optional)

Question 9

In what capacity are you giving your professional opinion?

Question 10

If you answered that you work in the health and social care workforce, do you currently work in social care?

Question 11

Which of the following social care roles best describes the role you currently work in?

Question 12

Who is your social care employer?

Question 13

Which of the following services do you currently work in?

Question 14

How many hours a week are you contracted to work in social care? (Optional)

Question 15

Who do you provide care services for?

Question 16

Do you currently hold any type of visa or immigration permission to live, study or work in the UK?

Question 17

What type of organisation are you responding on behalf of?

Question 18

What is the name of your organisation?

Question 19

Where does your organisation operate or provide services?

Question 20

How many people do you currently employ in social care services?

Question 21

What type of social care services do you provide?

Question 22

Who does your organisation provide care services for?

Question 23

Which option do you support?

Question 24

Which proposal do you support to ensure workers are appropriately represented?

Question 25

Care Forum Wales and the National Provider Forum are the employer representative organisations that currently represent social care providers on the Social Care Fair Work Forum. 

Do you agree or disagree with this proposal?

Question 26

Which of the 2 options proposed for involving local government and ADSS in the Fair Pay Agreements process do you support?

Question 27

Do you agree that Welsh Government should have an advisory role (without voting rights) as part of the SCNB for Wales?

Question 28

Do you think there are any other organisations who should be members of the SCNB, in addition to the proposed worker and employer representatives?

Question 29

How should the interests of people who pay for their own care be considered as part of the negotiation process? (optional)

Question 30

How should the interests of NHS commissioners be considered as part of the negotiation process? (Optional)

Question 31

Are there any specific criteria that you think Welsh Ministers should consider when appointing members to the SCNB?

Question 32

Do you agree with the proposal for Welsh Government to provide secretariat to the SCNB?

Question 33

Are there any factors we should consider when deciding how any funding available is distributed to support the negotiation and implementation of the Fair Pay Agreement?

Question 34

Is there anything else that you think a remit letter from the Welsh Government should set out?

Question 35

Do you agree or disagree with our proposal for how negotiations will begin?

Question 36

Do you agree or disagree with our proposal that each of the bargaining sides manages their own voting system, with a requirement that each side simply informs the chair whether they can support a proposed settlement?

Question 37

Do you think 6 months is enough time for an agreement to be reached in negotiations?

Question 38

Do you think 6 months is enough time for the sector to prepare for implementation of the pay agreement allowing Welsh Government to consider the recommendation and implement?

Question 39

Are there any roles, either in your organisation or that you employ, that you are concerned do not fit within the definition of an adult social care worker as set out in section 42(1)(b) of the 2025 Act and section 3  above, and therefore may not be within coverage of the SCNB?

Question 40

How can Welsh Government support you or your organisation to determine whether your workers are to be within coverage of the SCNB? (Optional)

Question 41

Are there any settings, services or roles that you think should be excluded from the SC Negotiating Body’s coverage?

Question 42

Are there any other settings, services or roles that you think should be included within the SCNB’s coverage that have not been mentioned?  (Please see section Coverage and remit for the list)

Question 43

Please share any thoughts on whether the SCNB could affect those that are self-employed or working under informal arrangements. (Optional)

Question 44

Do you agree or disagree that workers covered by the National Joint Council for Wales should also be in the SCNB scope?

Question 45

Do you agree or disagree that workers covered by the Agenda for Change contract should also be in the SCNB scope?

Question 46

Do you currently manage a service across the borders between England and Wales or England and Scotland?

Question 47

In principle, would having to comply with different legal requirements for pay and terms and conditions in different countries cause you to reconsider your operations and where you provide care?

Question 48

If pay and terms and conditions were different between England, Wales and Scotland, would this have any effect on your choice of job, where you work or where you live?

Question 49

Which option below would you prefer where there is the potential for a worker to be covered by more than one Fair Pay Agreement because they are working across borders?

Question 50

Out of the following areas of pay, which do you think should be a priority for the Welsh Government’s first remit letter to the SCNB?

Question 51

Out of the following terms and conditions, which do you think should be a priority for the Welsh Government to consider as part of their remit letter to the SCNB?

Question 52

Which, if any, of the following areas within training, development and career progression do you think should be included within the SCNB’s remit?

Question 53

Which, if any, of the following areas within people and culture policy do you think should be included within the SCNB’s remit?

Question 54

Which, if any, of the following areas within additional benefits and financial support do you think should be included within the SCNB’s remit?

Question 55

If there are any additional areas that the SCNB should consider or have in its remit, please outline them here. (Optional, maximum 250 words)

Question 56

Do you agree or disagree with the proposed approach to dispute resolution, where disputes are triggered by the chair and referred to Acas for independent dispute resolution? (Optional)

Question 57

What do you think should be included in guidance and communications to support you to implement Fair Pay Agreements? (Optional, maximum 250 words)

Question 58

Do you agree or disagree that Welsh Government and the SCNB should co-author and publish guidance? (Optional)

Question 59

What do you need guidance on to help you or your organisation to comply with a Fair Pay Agreement? (Optional)

Question 60

Please share any other views or comments about what support is needed for providers and commissioners of care to comply with a Fair Pay Agreement. (Optional)

Question 61

Please share any views or information from your perspective about the current processes for resolving disputes and complaints about contracts of employment, pay or working conditions. If there are any changes that you think should be made to these processes, please include them in your response. (Optional)

Question 62

Are there any groups of people, such as (but not limited to) those with protected characteristics, who you believe would be positively impacted by the proposals in this consultation?

Question 63

Are there any groups of people, such as (but not limited to) those with protected characteristics, who would be negatively impacted by the proposals in this consultation?

Question 64

What impact, if any, do you think establishing a social care negotiating body to determine Fair Pay Agreements could have on opportunities to use the Welsh language and on ensuring the Welsh language is not treated less favourably than English?

Question 65

Could the development of a social care negotiating body be designed or adapted to promote positive effects on the use of Welsh and to mitigate any negative effects?

Question 66

We have asked several specific questions. If you have any related issues which we have not specifically addressed, please use this space to report them:

How to respond

Submit your comments by 29 Aoril 2026, in any of the following ways:

Social Care Workforce team
Cathays Park 2
Cardiff
CF10 3NQ

UK General Data Protection Regulation (UK GDPR)

The Welsh Government will be data controller for Welsh Government consultations and for any personal data you provide as part of your response to the consultation. 

Welsh Ministers have statutory powers they will rely on to process this personal data which will enable them to make informed decisions about how they exercise their public functions. The lawful basis for processing information in this data collection exercise is our public task; that is, exercising our official authority to undertake the core role and functions of the Welsh Government. (Art 6(1)(e)) 

Any response you send us will be seen in full by Welsh Government staff dealing with the issues which this consultation is about or planning future consultations. In the case of joint consultations this may also include other public authorities. Where the Welsh Government undertakes further analysis of consultation responses then this work may be commissioned to be carried out by an accredited third party (e.g. a research organisation or a consultancy company). Any such work will only be undertaken under contract. Welsh Government’s standard terms and conditions for such contracts set out strict requirements for the processing and safekeeping of personal data.

In order to show that the consultation was carried out properly, the Welsh Government intends to publish a summary of the responses to this document. We may also publish responses in full. We publish responses anonymously and your name and contact details will not be included. If you would like your name or other details published alongside your response, please let us know when you submit your response, and we will include them.

You should also be aware of our responsibilities under Freedom of Information legislation and that the Welsh Government may be under a legal obligation to disclose some information.

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Under the data protection legislation, you have the right:

  • to be informed of the personal data held about you and to access it
  • to require us to rectify inaccuracies in that data
  • to (in certain circumstances) object to or restrict processing
  • for (in certain circumstances) your data to be ‘erased’
  • to (in certain circumstances) data portability
  • to lodge a complaint with the Information Commissioner’s Office (ICO) who is our independent regulator for data protection

For further details about the information the Welsh Government holds and its use, or if you want to exercise your rights under the UK GDPR, please see contact details below:

Data Protection Officer

Data Protection Officer
Welsh Government
Cathays Park
Cardiff
CF10 3NQ

E-mail: data.protectionofficer@gov.wales

Information Commissioner’s Office

Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF

Telephone: 01625 545 745 or 0303 123 1113

Website: ico.org.uk

Further information and related documents

Number: WG53355

You can view this document in alternative languages. If you need it in a different format, please contact us.