Today we’re looking into the salary increases that are happening within the Social Care and Childcare sectors again this year, highlighting residential childcare homes and nurseries. Both sectors have faced pressure over the years from people working within the sector, resulting in workforce shortages, high turnover and rising demand of companies having to offer competitive pay whilst keeping everything sustainable.   

As a specialist recruitment consultancy in this sector, we have seen firsthand how adjusting salaries have helped to reshape recruitment and retention, and why the changes happening in April 2026 are important.   

Why Are Salaries Increasing?

The main reasons that salaries are increasing are:

1. Government Statutory Wage Increases

Care providing businesses should prepare now for significant increases in the National Minimum Wage and National Living Wage, confirmed as part of the government’s Autumn Budget, which will come into effect from 1 April 2026.   

These changes will directly impact staffing costs across the care sector, especially for those roles currently paid at or near the statutory minimum. The National Living Wage will rise to £12.71 per hour, up from around £12.21 for those 21 years old and above (a 4.1 % increase).   

Providers are advised to review staffing budgets, payroll systems, and recruitment plans well ahead of April 2026 to ensure compliance and financial sustainability.*

2. Cost of Living and Market Competition:   

Cost of living is constantly rising, and so is the competition for skilled, qualified, experienced workers. This automatically increases the pressure from employers to offer more than the statutory minimum wage. Many candidates will expect that the pay meets the reality.   

3. Sector Rebalancing and Funding Realities  

It is no secret that pay in childcare and social care has lagged behind other sectors. Even within the sector, research shows that private residential childcare often pays significantly less than equivalent roles in local government, contributing to recruitment challenges.* 

What the April 2026 Rise Means for Clients

For both residential childcare homes and nurseries, the wage increase in April 2026 represents both a legal requirement and an essential requirement.   

Employers must plan now to accommodate higher wage costs. This will roll into pension contributions, National Insurance costs and holiday pay, making it more than a one-off change.   

Offering rates above the statutory minimum helps you stand out when recruiting. Under paying staff is one of the main reasons we see candidates looking for new jobs or leaving the sector entirely. A clear, forward-looking pay strategy helps reduce turnover and the need for expensive agency cover.  

What It Means for Candidates

For workers within the sector, a rising wage is an obvious positive. This will offer improved earnings, better security, and will make them feel like there is a better value of their work.   

This will result in more take-home pay and career progression. With more take-home pay, even the smallest increases add up over the year, helping families with reducing their financial stress. As salaries rise, so will career progression. Candidates are always looking at the training, support and professional development that can be offered, and will look at employers more if they can offer all of the above.   

How Can Ben Williams Recruitment Support You?

1. At Ben Williams Recruitment, our role is to help bridge the gap between employers’ needs and candidates’ expectations by offering:

2. Tailored insights into current pay trends in both nurseries and residential childcare homes, so you can make offers that reflect both compliance and the competition from other providers, showing you how the increase compares with what other providers are offering and candidates expectations.

3. Candidate attraction and retention support… From supporting and enhancing your company brand, to running targeted campaigns, we help you create a job offer that attracts the right candidates and keeps them engaged.

4. We can communicate the pay increase clearly to the candidates so they immediately see the value of working with you. 

5. We can re-engage candidates who previously declined due to the salary being too low.

6. We provide full-time permanent staff, reducing your agency fees which would be higher than the pay increase.   

Conclusion

The 4.1% rise is the lowest percentage increase in the national living wage since 2021, with the rate having increased by almost 10% in each of 2023 and 2024 and by 6.7% earlier this year.

The salary increase shows equity, sustainability and long-term workforce health. When employees are paid well, it reduces financial stress, and improves their want to stay with their current employer (better retention). This can all lead to better mental and physical health, improves morale and ultimately creating a better workforce long-term.   

If you’d like help understanding how these changes affect your organisation, or your next career move, get in touch and we’ll support where it’s needed. We’re here to help you recruit with confidence and clarity.