Are We Ready for a Fair Pay Agreement? Preparing Public Sector Employers for Change

As Labour’s Fair Pay Agreements (or “FPA’s”) begin to take shape under the Employment Rights Bill, it is time for public sector employers across the UK to ask whether they are ready to manage sector‑wide bargaining, minimum wage laws, and evolving workforce roles. 

Challenges facing public sector employers 

Public services like adult social care are highly fragmented, with low union density of just 15% in the private care sector – even when it reaches 41% in the public realm. One early step for public sector bodies is mapping the landscape to identify representative employer bodies and union partners with the capacity to negotiate new FPA terms – asking, which employers’ associations already exist? Do they have the capacity for negotiation? Where union membership is low, unions may seek statutory entitlements to speak to non‑members and access workplaces. 

Local authorities will likely bear the brunt of additional costs. Government impact assessments warn that without additional funding, increased labour costs for care providers may be passed on to councils or self-funders, squeezing already tight budgets. Therefore, employers must gauge not only pay commitments, but also financial resilience under FPA pressure. 

We can take lessons from policies that are already in place overseas, such as in New Zealand, that suggest that strong institutional support is vital. The UK would require funding for both employer and union representatives, the power for independent tribunals to impose terms if negotiations break down, and enforcement mechanisms such as a new Fair Work Agency to ensure compliance. 

Preparing for negotiation and enforcement 

Public sector employers should also anticipate the launch of the Fair Work Agency, which will centralise enforcement. Until then, parallel mechanisms such as tribunals, mediation or existing inspection bodies, may be required to fill the gap. 

Under FPA’s, negotiations will cover not only pay but working time, training, health and safety, pensions and diversity commitments. Key roles such as EHCP Coordinator, Registered Manager, and Director of Governance jobs could be directly impacted. Employers will need to factor in sector‑wide minimums for these positions when forecasting budgets and recruitment plans. FPA’s may also allow unions to require statutory access to speak to staff in roles like EHCP Coordinators or Registered Managers, which are critical for ensuring pay fairness across all staff bands. 

FPA’s offer the promise of greater pay fairness, reduced wage disparities, enhanced retention, and improved recruitment – especially in underpaid, high‑turnover sectors such as care and local government. Employers who prepare early may benefit through lower turnover, better-trained staff, and enhanced reputation as fair employers. 

Practical readiness checklist and questions for employers 

1. Representation – Do you have or can you join a sectoral employer body ready for negotiations? 
2. Union engagement – Which unions cover your workforce? What’s membership density? 
3. Financial modelling – Can existing budgets absorb future pay floors? What levers exist to recover costs? 
4. Enforcement readiness – Do existing internal or external mechanisms support dispute resolution ahead of the Fair Work Agency? 
5. Strategic alignment – How will FPAs align with statutory equality obligations, recruitment plans, and government expectations on productivity? 

Why Hamptons Resourcing is uniquely positioned 

At Hamptons Resourcing, we specialise in public and private sector social care recruitment – placing candidates into roles such as Registered Manager, Care Coordinator, and interim leadership positions. Our network spans local authorities and independent providers across the UK. With an established candidate base and insights into recruitment trends, we’re well placed to advise employers preparing for FPA arrangements as navigating pay floors while safeguarding talent pipelines for key positions. 

TL;DR Conclusion 

The introduction of Fair Pay Agreements represents a transformative shift in public sector labour relations. For employers, readiness depends on strong representative structures, financial foresight and preparedness for legally binding terms and enforcement. While complex, early action will position public bodies to shape and benefit from a fairer, more stable pay system as FPA’s roll out.

Are public sector employers ready? With proactive planning and partnership, the UK can seize this moment – not just to deliver fair pay, but to build stronger, more sustainable services for all. 

From our Education Funding Consultant roles to interim EHCP and SEND roles, our consultant team actively supports public sector providers to recruit and retain qualified individuals ahead of FPA’s. We regularly liaise with employers to align recruitment strategy with anticipated pay changes – particularly in areas impacted by FPAs such as education and social care. 

Organisations that act now – mapping representation structures, modelling budgets, and aligning recruitment strategy with trusted partners such as Hamptons Resourcing and lead experts – will be best placed to deliver fairer pay, stronger governance and sustainable services.

Contact Hamptons Resourcing or reach out to Marcus Hall and our wider public sector team for practical, proactive support, as well as advice on recruitment readiness, via marcus@hamptonsresourcing.com