Money, money, money: care workers are facing retirement insecurity

The UK government is facing calls to reform pension arrangements for social care staff in England. 

Trade union UNISON warns longstanding issues in the sector, such as low wages, unstable contracts and frequent job changes are stopping care workers from building sufficient pension savings. 

In a letter to Wes Streeting, the union outlined challenges affecting hundreds of thousands of staff supporting elderly and disabled people. It also proposed measures aimed at improving their long-term financial stability. 

Most care workers are currently enrolled in basic workplace pension schemes; however, many accumulate multiple small pension pots as they move between employers. UNISON says this fragmented system increases the risk of insufficient retirement income.

The union adds that some workers don’t earn enough to qualify for full pension contributions. Part-time staff and those holding various jobs are particularly affected.  

To address this, UNISON is calling for a sector-wide pension scheme built for adult social care. Under its proposal, employers and employees would contribute to a shared fund rather than individual pots. 

The scheme could be introduced through a fair pay agreement, supported by the Department of Health and Social Care. Evidence from other countries shows collective pension arrangements can deliver significantly higher retirement incomes, potentially around 30% more than individual schemes. 

UNISON argues reform could also help tackle workforce shortages – a problem that has long plagued the social care sector. It also says better pension provision could improve perceptions of social care as a long-term career.

Andrea Egan, general secretary of UNISON, 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.’

Image: Shutterstock 

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