Liberal Democrats - Social care

Create a Carer’s Minimum Wage

Raise adult social-care pay by a sector-specific minimum wage.

Last updated: May 2026.

Read the policy-specific methodology note

Policy baseline

The manifesto proposes a higher Carer’s Minimum Wage. Costs depend on adult social-care workforce pay, hours and public fee pass-through.

Targets paid adult social-care workers.
Publicly funded providers require higher fees.
Pay compression could spread costs upward.

Core trade-offs

The direct beneficiaries are care workers and recruitment. The costs fall mainly on taxpayers, councils and self-funders. The main economic question is provider costs can exceed the pay rise.

Care workers and recruitment gain most directly.
Costs fall mainly on taxpayers, councils and self-funders.
Key risk: provider costs can exceed the pay rise.

Fiscal impact by 2028-29

+GBP 2.0bn to +GBP 10.0bn. Central estimate: +GBP 4.0bn.

Positive numbers mean net fiscal cost; negative numbers mean Exchequer savings.
Main channel is the scored tax, spending or delivery change.
Offsets depend on tax receipts, behaviour and pass-through.
Range reflects uncertain implementation and economic response.
This is not an official costing.

Economic impact by 2028-29

Jobs: NHS and care demand for staff rises; shortages may bid workers away from other sectors.
Wages: Direct gains for health and care staff if pay or hours rise.
Prices: Public provision limits prices; agency costs can rise under shortages.
GDP / productivity: Potentially positive if health improves labour supply; delivery bottlenecks may limit gains.

Assessment

This is a real trade-off, not a free gain. Care workers and recruitment benefit, while taxpayers, councils and self-funders bear most costs. Overall output depends on behaviour, capacity and pass-through.

Confidence: Medium-low. Higher on the policy target and fiscal channel; lower on behaviour, pass-through and economy-wide effects.

Main risks

Workforce shortage: More money may bid up scarce labour rather than expand capacity.
Productivity risk: Extra appointments or care hours need workflow changes to improve outcomes.
Cost drift: Health and care commitments tend to grow with demographics and wages.