Millions of people are currently balancing paid work alongside their unpaid caring responsibilities for family members and friends across the UK. While being in work is good for carers’ wellbeing, we know this balancing act can have a significant impact on carers’ incomes, career progression, wellbeing and long-term financial security.
A lack of workplace support, inadequate social care provision and too few employment protections mean that, each year, hundreds of thousands of unpaid carers are left with little choice but to reduce their working hours or leave employment altogether because current workplace structures and employment rights do not adequately reflect the realities of combining paid work with unpaid care.
This can have profound long-term consequences for them and their families, including reduced earnings, diminished pension savings, financial insecurity, social isolation, and poorer mental and physical health.
Carer’s Leave: where we are today
In 2024, following Wendy Chamberlain MP’s Private Member’s Bill, England, Wales and Scotland the right for employees to access five days (pro rata) unpaid carer’s leave came into effect through the passage of the Carer’s Leave Act 2023. This right sits alongside an entitlement to take a ‘reasonable’ amount of emergency leave to support ‘dependents’, and was the third time an MP or member of the House of Lords had attempted to bring Carer’s Leave into law via a Private Member’s Bill (Previous attempts were made by Baroness Tyler in 2016 and Jack Brereton in 2021. It was also a manifesto pledge for the Conservative Party in the 2019 election).
While the Carer’s Leave Act was a landmark step for the 1.9 million people in work who become unpaid carers each year, the limitations of the right to unpaid leave are clear from our research. For those in low-income jobs, taking unpaid time off is not a viable option – it’s a fast track to financial hardship, which many carers already experience.
Currently, the Department for Business and Trade – as part of a wider review of the employment rights of carers – is seeking views on the leave options available to unpaid carers generally, and specifically for those who are caring for severely ill children. Centre for Care and Carers UK research highlights the inadequacy of carer’s leave when it is unpaid in supporting carers to balance work and caring, and the inequalities it exacerbates and creates.
The cost of inaction versus the cost of paid leave
Every day, 600 carers leave work. A range of measures – including paid carer’s leave – could reduce this number. While paid carer’s leave will require resources, the costs of inaction are greater. The Government’s own figures show that lost productivity due to unpaid care costs the economy £37 billion a year. Modelling by Carers UK indicates that:
- By keeping people in employment, the UK economy could gain up to £8.2 billion a year through improved productivity and reduced recruitment burdens.
- Implementing 5 days of paid leave would cost £5.5m to £32m per year.
- The absence of paid Carer’s Leave costs the state roughly £1.3 billion annually in lost tax revenues and increased welfare benefits.
Unpaid leave does not address inequality, or acknowledge the income penalty caring brings
Centre for Care research shows that carers already experience a significant income penalty because of caring. Analyses find caring results in a lower income for carers when compared to non-carers, and that the income gap widens over time and as caring increases. The income penalty – the gaps between those caring and not caring – is greater for women than men. There are already inequalities experienced by women related to care as they are both more likely to care and to care for longer and more intensely than men. Unpaid leave therefore remains impractical for many carers already experiencing challenging financial situations – and women on low incomes are more likely to be unable to use unpaid carer’s leave.
The UK is failing behind other countries
While the UK was the early adopter of many policies to support unpaid carers and was emulated by other countries and carers’ organisations around the world, it has now fallen behind other nations in terms of the support that carers receive to help them juggle paid employment and unpaid care. Today, comparable economies across Europe, North America, and Asia already offer short- and long-term paid carer’s leave options, often exceeding 10 days a year.
When looking at other countries, research shows that paid schemes enable carers to remain in employment, whereas unpaid schemes fall short. Furthermore, paid leave offsets costs elsewhere in the care system. For example, when California introduced paid carer’s leave, it led to an 11% drop in the proportion of older citizens moving into nursing homes.
Table 1: Carer’s Leave Policies from other countries
| Leave type | Country | Duration | Compensation | Other conditions |
|---|---|---|---|---|
| Short-term unpaid | Finland | 3 ‘short’ leave schemes (two of unspecified duration and one for 5 days) | – | Care for family member; medical certificate can be requested |
| Japan | 5 days (10 if caring for more than one person) | – | Care for specific family members; specific types of workers; notice required | |
| Short-term paid | Poland | 2 days | 50% of salary | Care for family member |
| Australia | 2 short leave scheme (one for 2 days and one for 10 days that accrues) | Paid at base salary | Care for family/ household member; not casual workers; medical certificate can be requested | |
| Sweden | 10 Days | 80% of salary | Care for family member, friend, neighbour; medical certificate can be requested; six month work history | |
| Germany | 10 Days | 90% of salary | Care for ‘lose relative’; Small-Medium Enterprises (SMEs) excluded | |
| Long-term paid | Germany | Six months, full or partial leave | Interest-free loan | Care for ‘close relatives’; SMEs excluded; proof of care required; notice required. |
| Canada | Several, vary in duration (8-37 weeks) | 55% of salary | Family member/ ‘like family’; 600 insured days in 52 weeks; medical certificate required. | |
| Japan | 93 days paid | 67% of salary | Family member; employees and some workers; notice required. | |
| Finland | 100-180 days paid | 70% basic unemployment allowance | Employed at least 75%; family member or ‘someone close’; medical certificate can be requested; notice required. | |
| Poland | 60 days | 80% of salary | Family member. | |
| Slovenia | 10 days paid per caring episode, no annual limit | Immediate co-resident family member; medical certificate required. | ||
| Sweden | i) 10-120 days paid; ii) 100 days paid (240 for certain health conditions) | Family member, friend, neighbour; medical certificate required; notice required. |
Finally, caring is not a niche policy area – it affects us all
Most people will become a carer at some point in their lives. Centre for Care and Carers UK research indicates the average person in the UK is just as likely to care for a loved one as they are to buy a home. Caring is unpredictable and the caring population itself is dynamic: 12,000 people become carers every day, while others transition out of their caregiving roles.
As our society ages, caring is going to become more prevalent. By 2035, the working-age population will grow by a mere 5%, while those aged 85 and over are predicted to double.
With the ageing of the population, the proportion of working carers will rise sharply. Forward-looking policies—such as paid carer’s leave—are no longer just a compassionate option; they are a necessity to support carers, maintain workforce participation, and maintain a sustainable economy. The consultation is an opportunity to influence policy and is not to be missed.
Carers UK and the Centre for Care are calling for the Government to use the review it is conducting to introduce a new legal entitlement to paid Carer’s Leave. Carers UK has produced a briefing to support organisations that wish to respond to the consultation. It outlines the key issues under consideration and explains Carers UK’s policy priorities. Centre for Care has created a case for change – endorsed by Carers UK, Carers Trust, Women’s Budget Group, CIPD and Baroness Lister of Burtersett – which summarises the evidence on why paid carers leave is so important.
We encourage you to review the briefing and the Case for Change, and to submit a response to the consultation, highlighting the significant benefits that a statutory right to paid Carer’s Leave would bring to carers, employers and the wider economy. The consultation closes at 11.59pm on Tuesday 1 September. Responses can be submitted online or by emailing unpaidcarers@businessandtrade.gov.uk.
About the authors
John Perryman is Head of Policy and Public Affairs at Carers UK.
Kate Hamblin is Professor of Social Policy and Director of the Centre for Care.
