Carers’ leave plans widen employment reform

The government has opened a consultation on new employment rights for unpaid carers and parents of seriously ill children, including possible paid carer’s leave and a statutory right to return after a period of intensive caring.

Launched by the Minister for Employment Rights, the consultation forms part of the wider Make Work Pay agenda and will run until 1 September 2026. Ministers are seeking views from carers, parents, employers, campaign groups, and representative bodies on whether existing workplace protections are sufficient for people balancing paid work with caring responsibilities.

Around three million unpaid carers currently combine employment with caring duties. The government says many are forced to reduce their hours, delay returning to work, or leave employment altogether, creating an estimated £37bn annual cost to the economy through lost labour market participation.

The proposals under consideration include paid carer’s leave for the first time, a new right to return to work after intensive caring, and clearer guidance to help workers and employers understand the protections available. Ministers are also seeking views on Hugh’s Law, a campaign for stronger rights and financial support for parents of seriously ill children.

Employment Rights Minister Kate Dearden said: “You shouldn’t have to choose between your job and those you love.”

The proposal would build on the Carer’s Leave Act 2023, which created an entitlement to unpaid leave for employees with caring responsibilities. The consultation asks whether that framework is working effectively and what additional support could help carers stay in work or return after a crisis period.

Practical questions will sit around eligibility, notice periods, evidence requirements, pay calculations, role protection, and the interaction between any new entitlement and existing leave policies. Paid leave would require payroll and HR systems to track entitlement and payment accurately. A right to return would raise separate questions around cover, continuity, performance management, and role design during longer absences.

Alongside the carers consultation, ministers are already examining reforms to zero hours arrangements, including guaranteed hours, shift notice, and cancellation payments. The direction of travel points towards a labour market framework built around greater income security, stronger enforcement, and a narrower tolerance for arrangements that place volatility on workers.

Caring responsibilities are becoming a structural workforce issue. An ageing population, pressure on health and social care services, and longer working lives mean more employees are likely to have caring duties during mid-career and senior-career phases. The effect can be especially acute in experienced roles, where sudden departure removes institutional knowledge and increases replacement costs.

Retention is central to the policy debate. Employers that keep experienced staff connected to work during caring episodes may avoid recruitment costs, preserve skills, and reduce the disruption caused when employees leave entirely. The business case will depend on whether the rules are clear enough to manage and flexible enough to work across different sectors.

Smaller employers may raise concerns about short-notice cover and the direct cost of paid leave. Larger organisations may have more administrative capacity, but can still face operational strain where specialist roles are difficult to backfill. Frontline employers, including retail, care, logistics, hospitality, and public service contractors, are likely to scrutinise how entitlement design affects rota management and service continuity.

Workplace culture will also shape the effect of any new rules. Employees often avoid disclosing caring responsibilities until they reach a crisis point, especially where they fear being viewed as less committed. Statutory rights may make conversations easier, but line managers will need training to handle requests consistently and without informal penalty.

The consultation creates a window for employers to influence the detail before legislation is finalised. The eventual model will determine whether caring responsibilities remain largely managed through informal discretion or become a clearer part of employment rights, workforce planning, and retention strategy.