“The current pension system isn’t designed for the realities of care work. A collective approach would deliver fairer, more secure futures for workers when they get older.”
By UNISON
Ministers must overhaul pensions in the social care sector in England to ease the dire staffing crisis and reduce the risk of workers facing financial hardship in later life.
Endemic low pay, insecure work and fragmented employment patterns mean care staff struggle to build a proper pension pot.
UNISON has written to Health and Social Care Secretary Wes Streeting to highlight concerns and recommend ways to improve the prospects of hundreds of thousands of essential workers who look after the elderly and disabled.
Currently, most care workers rely on minimum auto-enrolment* and accumulate multiple small pension sums tied to different employers. That makes their pensions difficult to manage and can lead to a shortfall in retirement income.
In addition, many staff fall below earnings thresholds for full pension contributions, further weakening their retirement prospects. Those in part-time jobs or working across multiple roles are particularly at risk.
UNISON is proposing a pension scheme for the adult social care sector where employers and employees contribute to a collective fund.
In the letter to Wes Streeting, the union says this new approach could be developed through the fair pay agreement framework and supported by the Department of Health and Social Care.
Staff, employers and government all stand to benefit. International evidence suggests collective pension models can deliver 30% higher retirement incomes than standard arrangements where staff put money into a personal pot.
Employers would benefit by retaining more staff at a time of an ongoing recruitment crisis in the care sector. The government would also gain from improved capacity in social care, which eases NHS pressures.
In addition to financial benefits, a sector-wide pension scheme could help strengthen the status of social care as a profession, supporting recruitment and long-term workforce stability.
UNISON is calling for urgent discussions with government officials to explore how the proposal can be taken forward.
UNISON general secretary Andrea Egan said: “Care workers dedicate their working lives to supporting others, yet too many face an uncertain retirement.
“The current pension system isn’t designed for the realities of care work. A collective approach would deliver fairer, more secure futures for workers when they get older.
“It would also make the sector more attractive as a career. The government should work with unions to make this a reality.
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- This article was originally published by UNISON on 8 April 2026.
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