Care workers are twice as likely to live in poverty than the average UK worker, according to a hard-hitting new report from a leading think tank, which is calling on the government to improve pay levels.
The report, published today by the independent Health Foundation, identified “shameful” levels of poverty and deprivation in care workers and their families.
“Caring for older people and disabled people is vital and fulfilling work, but it has long been underpaid and undervalued”
Lucinda Allen
It has urged the government to provide the funding needed to provide better wages and improved working conditions for social care workers.
The conclusions in the new report – titled Poverty, pay and the case for change in social care – were based on an analysis of national survey data from 2021-22 and 2023-24.
It found that one in five people working in residential care homes was living in poverty. This is twice the average poverty rate in UK workers.
In addition, more than one in 10 care home workers experienced food insecurity and 15% were relying on Universal Credit, the analysis showed.
Of even more concern, it found that one in 10 children of residential care workers went without essentials such as a warm winter coat.
The report also found inequalities between care workers, with one in three care workers born outside the UK living in poverty compared to one in 10 who were born in the UK.
The report called on ministers to tackle poverty in social care workers by providing the funding needed to fulfill its commitment to establishing a fair pay agreement for adult social care within this parliament.
The Health Foundation has estimated that poverty in social care workers could be slashed by increasing the minimum wage for residential care workers to £11.85.
Such a move would bring their wages in line with staff on NHS Agenda for Change band 3 from 2022-23.
This wage increase would mean a rise of 6.6% in the average household income for residential care workers, with the greatest benefit felt by those currently living in poverty, who could see their household income increased by nearly 15%.
However, the foundation warned that reaching this kind of meaningful improvement to pay and conditions in social care would require extra funding above the settlement laid out in the recent spending review.
The think tank’s document stated that last month’s spending review “allows for an increase of over £4bn of funding available for adult social care in 2028-29, compared to 2025-26”.
The Health Foundation estimated that raising residential minimal care worker pay to £11.85, as it recommends, would cost an additional £2.3bn.
Lucinda Allen, one of the report’s authors and a policy fellow at the foundation, said it was “no surprise” that so many care workers and their families were struggling to keep up with bills, afford enough food, put savings aside and provide warm clothing for their children.
“Caring for older people and disabled people is vital and fulfilling work, but it has long been underpaid and undervalued,” she said.
Ms Allen called on ministers to fulfill their promise of fair pay for the sector. “The government must deliver on its promise of fair pay for care workers, alongside wider improvements to our care system,” she said.
The executive director of the Royal College of Nursing in England, Patricia Marquis, agreed that there was an “urgent need” to improve pay and conditions for care workers, saying that it was a “sad state of affairs” that this vital workforce was so poorly valued.
“It is unacceptable that those caring for some of the most vulnerable are forced to live in poverty, unable to pay for food, and use welfare payments to top up their salaries,” she said.
Ms Marquis added that it was “little wonder” that there were so many vacancies in social care. “When care homes cannot recruit enough staff it leaves too many without access to the care they deserve,” she said.
She also called on the government to fulfill its pledge to introduce a fair pay agreement for social care workers.
“Ministers must not delay in introducing a fair pay agreement and a new body to improve conditions for care workers, as well as rooting out exploitation,” she said.
“Failure to do so will only undermine ambitions to move care into the community and deepen a social care workforce crisis that harms the vulnerable,” Ms Marquis said.
Unison general secretary Christina McAnea also agreed that improved social care wages were needed to meet increased social care workforce requirements.
“It’s a national scandal those looking after some of the most vulnerable are more likely to be on poverty pay and struggling to make ends meet,” she said.
“Until wages go up, the sector won’t be able to recruit the staff needed and gaps in the workforce will only increase as the UK’s population ages,” Ms McAnea added.
She said that by finding the funding for a fair pay agreement that should see care workers rewarded properly, the government would be showing that it is serious about transforming the crisis-ridden sector.
“Decent wages have to be at the heart of the promised national care service the country needs so desperately,” Ms McAnea said.
