The Government published its 2026 Budget on 2026-10-28, with several announcements that matter to adult social care employers.
National Living Wage increasing
From 2027-04-01, the National Living Wage will increase by 3.9% to £13.21 per hour, with the National Minimum Wage for 18–20-year-olds rising to £11.27. Providers should begin considering the impact on workforce costs and pay structures as part of their financial planning for 2027/28. [gov.uk]
Better mileage support for care workers
There is particularly welcome news for staff who use their own cars for work. The 55p tax-free mileage rate for the first 10,000 business miles is being made permanent, while the rate above 10,000 miles will increase to 35p from 2027-04-06. The Government specifically highlights care workers among those expected to benefit. [gov.uk]
Future of social care
The Budget also signals a significant longer-term change. The Government has committed to building a National Care Service in England, including personal care for older people free at the point of use. Baroness Casey’s Independent Commission on Adult Social Care is now expected to report in 2027. [gov.uk]
Jobs and apprenticeships
There will also be £100 million over two years to expand local apprenticeship services, alongside previously announced financial incentives aimed at employers creating opportunities for young people. [gov.uk]
What should providers do now?
- Start modelling the £13.21 National Living Wage into 2027/28 workforce budgets.
- Review mileage arrangements and communicate the new tax-free rates to relevant staff.
- Consider whether the youth employment and apprenticeship measures could support recruitment.
- Watch the development of the National Care Service and Casey Commission closely.