Caring’s devastating impact on carers' finances – and loss of shocking £47 billion to the economy

Caring’s impact on carers’ finances – and loss of £47 billion to the economy

Two new reports have been launched, looking at the financial impact of caring – one focusing on carers themselves, and the other at the wider impact on the UK economy.

National charity Carers UK has released its report The State of Caring – the cost of caring, which illustrates the financial pressures driving carers into hardship.

Key findings are:

• Increasing amount of care: 52% of carers say the number of hours that they spend caring each week has risen in the last year.
• Cutting essentials: 49% of unpaid carers say they have cut back on essentials such as food, heating, clothing and transport. Energy costs: 84% report higher energy bills; 44% say they are finding it increasingly difficult to afford the costs of care because of the rise in the cost of living
• Impact on work:  Among working carers, 35% have reduced their hours and 21% have taken a lower-paid or more junior role to fit caring around work — directly reducing household income.
• Long-term insecurity: 74% are worried about their financial future once caring ends, including their ability to support themselves in retirement.
• Scale of contribution: Carers provide support valued at £184 billion per year — but too many are paying with their own financial security

The report makes a number of recommendations, calling on Government to:

Improve financial and pension security

• Urgently review and simplify the benefits system for carers.
• Raise Carer’s Allowance and related supplements to reduce poverty and prevent debt.
• Implement the Carer’s Allowance overpayments review recommendations swiftly and in full

Strengthen social care support and funding

• Sustainable funding for local authorities and £1.5 billion for respite/breaks, reducing crisis costs borne by families.
• Ensure carers’ needs are embedded in social care reforms.

Support carers in employment

• A statutory right to five days’ paid Carer’s Leave per year, and wider flexible work measures to protect earnings and progression.

 Enhance carers’ health and equality

• More carer-friendly NHS practice and better identification to prevent avoidable costs and income shocks.
• Add caring as a protected characteristic under the Equality Act 2010.

You can download the full report here, and can also download a two-page summary here.

Lost labour of unpaid carers costs UK economy up to £47.7bn

And our other national charity, Carers Trust’s new research ‘The hidden cost of unpaid care: The economic price of locking carers out of work’ has revealed the huge financial and social benefits of supporting unpaid carers into, and remaining in, employment.

The findings showed: 

• The total lost labour of unpaid carers is worth up to £47.7bn a year – equivalent to 1.7% of the UK’s entire GDP – which would further boost economic growth, contributing an additional £20.4bn in Gross Value Added (GVA) across the economy from carers having a higher income to spend.
• Helping unpaid carers closest to the job market back into work could boost the UK economy and household incomes by up to £16.9bn a year, leading to a further £7.2bn increase in GVA across the rest of the economy.
• Of the UK’s nearly six million unpaid carers, almost half (2.7 million)  are not in paid employment, including 524,000 who are currently unemployed but could work with the right support.
• If those 524,000 carers moved into full-time work, their household income could rise by up to £10.1bn, with additional benefits of up to £2.8bn in reduced welfare payments and £4bn in increased tax contributions.
• Beyond the financial impact, improved support would also help carers regain skills, confidence, and long-term career opportunities.

More details about the report here and you can read the full report here.