• Research finds that 245,000 care workers earned below £9.30 an hour across the UK last year.
• Introducing the real Living Wage would see full time care workers’ pay rise by £1,300 per year on average in England.
• Full time care workers in some of the most deprived local authorities in England would see their pay increase by £1,600 per year.
• Some ‘Red Wall’ care workers would receive an estimated £1,700 yearly pay increase.

Research by Centre for Progressive Policy (CPP) has found that guaranteeing the Real Living Wage for care workers would help remedy unacceptable working conditions which have long plagued adult social care and play a part in levelling up the most deprived parts of the country.

In 2020, 245,000 care workers in the UK were found to earn less than the real Living Wage outside of London (£9.30 per hour in 2019/20). CPP analysis of the latest local authority data shows that, in England alone, full-time workers providing direct care for independent providers would see their pay increase by an average of £1,300 a year if the Real Living Wage was introduced.

In the most deprived local authorities in England, full time adult care workers pay would rise by £1,600 with the introduction of the real Living Wage. Many areas across the North of England, especially those in formerly ‘Red Wall’ constituencies would see the largest benefits, due to larger differences between the average wage and real Living Wage, with workers in some ‘Red Wall’ areas such as Redcar and Cleveland, North Lincolnshire and Blackpool, seeing their annual earnings increase by at least £1,700 on average.

Crucially, introducing the real Living Wage will also help reduce intra-regional inequality. Across London, where the real Living Wage was set at £10.75 in 2019/20, full-time direct care workers, working for independent providers would see their earnings increase by £2,600 on average.

The nature of the sector, present throughout the country, means that such wage increases could provide a significant contribution to the government’s levelling up agenda. In the North of England alone, there were over to 330,000 base jobs available providing direct care, with over 20,000 vacancies at any one time in 2019/20; enforcing the real Living Wage would add to the appeal of the sector and improve the earnings of thousands of workers, presenting an opportunity to boost the government’s levelling up agenda.

These findings come at a time when poor working conditions in the industry have resulted in high-turnover rates, lack of investment in training, and a vacancy rate over twice that of the whole economy. Despite the extraordinary resilience of those who provide care, Covid-19 has had an enormous strain on care staff, with growing evidence of low morale amongst workers and reports of large numbers feeling a toll on their physical and mental wellbeing.

CPP is calling on the prime minister to use the upcoming Queen’s Speech to:

• Implement an appropriate funding settlement for the social care sector,
• Enact reforms to protect and enhance rights of social care workers, and,
• Guarantee the real Living Wage for the social care sector.

Dean Hochlaf, Research Analyst, Centre for Progressive Policy said:

“There is strong public support to better the way we treat social care workers, as well as increasing acknowledgement that our lives and the economy are dependent on our capacity to provide high-quality health and care.

Now is the time to overhaul working conditions to support a resilient social care system. Low pay, insecurity and few opportunities for progression are endemic within the sector, and it is taking its toll on the workforce. We cannot continue to turn a blind eye to the poor working conditions which so many of our invaluable frontline key workers have had to endure.

Improving working conditions would bolster our social care system, as well as build a more inclusive economy for those who rely on and provide social care. Introducing the real Living Wage and putting money directly into the pockets of hard working, frontline care staff is a good starting point. For workers, their families and communities, the benefits would be substantial.”

Average wage increase in most deprived local authorities in England for full-time adult care workers, working for independent providers would be £1,600 a year

The average wage increase in 13 ‘Red Wall’ authorities for full-time care workers employed by independent providers would exceed £1,300 per year

Notes to the editor

1. For enquiries, please contact Thomas Hauschildt, THauschildt@progressive-policy.net
2. Figures on potential earning increases estimated using local authority data from Skills for Care and relates to full-time direct care workers – care workers, senior care workers and support and outreach workers – working for independent providers
3. The figure 245,000 workers earning below the real Living Wage was estimated using data collected from the Annual Survey of Hours and Earnings (ASHE), region by occupation by four-digit SOC: ASHE table 15
4. Estimates for real Living Wage based on those of the Real Living Wage Foundation. Since April 2020, the real Living Wage outside of London has risen to £9.50
5. Evidence on the toll of Covid-19 on staff well-being as reported by the Health Foundation in January: https://www.health.org.uk/news...
6. Table of “red wall” authorities includes those were the increase is above total average of £1,300
7. CSSR – councils with social services responsibility
8. About CPP: The Centre for Progressive Policy is a think tank committed to making inclusive economic growth a reality. By working with national and local partners, our aim is to devise effective, pragmatic policy solutions to drive productivity and shared prosperity in the UK. Inclusive growth is one of the most urgent questions facing advanced economies where stagnant real wages are squeezing living standards and wealth is increasingly concentrated. CPP believes that a new approach to growth is needed, harnessing the best of central and local government to shape the national economic environment and build on the assets and opportunities of place. The Centre for Progressive Policy is funded by Lord David Sainsbury and hosts the Inclusive Growth Network.
9. For more information on the Centre for Progressive Policy, please see our website or follow @CentreProPolicy