Labour rejects report saying its fair pay agreement could cost taxpayers £4.2bn

The Policy Exchange study claiming the plan could cost taxpayers £4.2bn a year was criticised as ‘morally bankrupt’ by unions.

Labour has dismissed as “fiction” a think tank report claiming its fair pay agreements in social care could cost taxpayers £4.2 billion a year.

The study also assumes Labour would follow New Zealand’s model, where a recently-legislated sectoral collective bargaining system has now been scrapped. “After 14 years of Tory failure to fix the broken adult social care sector, Labour’s New Deal for Working People will lay the groundwork for better conditions that end the race to the bottom in care and offer the dignity and respect these crucial workers deserve.”

TUC general secretary Paul Nowak said: “We have an ageing population and an acute staffing crisis in social care – with over 150,000 vacancies.

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