Introducing paid Carer’s Leave could boost productivity, whilst improving millions of workers’ lives

• The upfront cost to Government of implementing paid Carer’s Leave is estimated to only be £5.5 to £32 million.
• In contrast, potential productivity gains from the policy could be £8.2 billion a year. 
• 5 million workers would benefit, reducing work-related inequalities.
• 80% of carers say that additional paid Carer’s Leave would help them to balance work and caring responsibilities.

Introducing statutory paid Carer’s Leave would bring significant benefits for more than two million working carers and the UK economy, far outweighing the modest costs of its introduction, according to charity Carers UK.

A new report from the charity estimates it would only cost the Government between £5.5 million to £32 million annually, if the statutory right to five days of unpaid Carer’s Leave for all employees with unpaid caring responsibilities was turned into paid Carer’s Leave. 

In contrast, the costs of people having to leave work because of their caring responsibilities – based on Carer’s Allowance payment figures and lost tax revenues – is an estimated £1.3 billion a year.

Ahead of the July 2024 General Election, Labour published its Make Work Pay policy, which committed the Government to examining the benefits of introducing paid Carer’s Leave and reviewing the Carer’s Leave Act 2023.

At a time when the Government is concerned about economic inactivity in the over 50s, a tight labour market, skills shortages, an ageing population and UK-wide productivity levels, Carers UK says evidence now demonstrates a strong economic and moral imperative for it to take early action to further support working carers.  

Carers UK is encouraging the Government to strengthen carers’ employment rights through the passage of its proposed Employment Rights Bill, including through the introduction of paid Carer’s Leave. 

Centrica plc, a leading carer-positive employer, has modelled the productivity gains they get from their supportive policies for unpaid carers in their workforce. Grossed up, this suggests that the UK economy could benefit from £8.2 billion in productivity gains through increased worker retention, reduced recruitment costs and a reduction in other productivity costs. 

There are 2.5 million employees who juggle paid work with their caring responsibilities and research estimates that a staggering 600 people a day are having to give up work to care for family and friends, significantly impacting their financial future in the short and longer term.

Women are twice as likely than men to leave their job due to caring, older workers are significantly at risk of giving up work and low paid workers cannot afford to take the time off to care. Paid Carer’s Leave would have a positive impact on inequalities in the labour market.

Longer term, Carers UK would like to see all employees have a statutory right to 10 days of paid Carer’s Leave each year. 80% of carers surveyed by the charity said that paid Carer’s Leave would better help them to juggle work and unpaid care.


Helen Walker, Chief Executive at Carers UK, said: 

“Our report makes clear that introducing a statutory entitlement to paid Carer’s Leave would be a positive step forward for millions of working carers and makes good economic sense.

“Many of UK’s top employers are already embracing this approach, offering their working carers flexibility and paid leave to support them to juggle work and care. Doing so relieves a huge amount of stress for individuals and gives valued employees the peace of mind to know they will have the support they need to stay in work. It is also good for businesses bottom line.

“Building on the Carer’s Leave Act 2023 by moving to paid Carer’s Leave through the passage of the Government’s Employment Rights Bill would therefore be a win:win situation for everyone; leveraging even greater benefits for working carers, the people they care for, their communities, employers, and the economy – all at comparatively very little cost.

“If we are to tackle the challenges of our ageing population and engage people in paid work for longer, we need employment policy to match the challenges we face. Introducing paid Carer’s Leave would support the UK economy, get more people back into work, keep productivity higher and meet families’ and workers’ needs for a better quality of life.”


Chris O’Shea, Group Chief Executive at Centrica, owner of British Gas, said: 

“We’ve worked with Carers UK for the last twenty years to help demonstrate the economic case for working carers policies. The carers in our business do an amazing job – both at work and at home – and we want to make sure they feel supported and able to stay in employment. 

“At Centrica, we have a leading carers policy which includes paid leave, flexible working, and a carers network. It’s the right thing to do and we want to help our employees and share best practices with others. Our experience shows that there is a clear business case for doing this with savings from increased retention and ensuring carers don’t have to take unplanned absences.” 

A copy of the report can be accessed here.