The research, titled “The Hidden Cost of Unpaid Care: The Economic Price of Locking Carers Out of Work,” was commissioned by the charity Carers Trust and funded by Phoenix Group as part of its Caring for Carers initiative.
It found that of the UK’s six million unpaid carers, nearly 2.7 million are not in paid employment and more than half a million (524,000) are unemployed but could work with the right support.
If those carers were able to take up full-time employment, it would add £16.9 billion to household incomes and the wider economy including £4 billion in additional tax revenue and a £2.8 billion reduction in welfare payments. The study estimates this would generate an extra £7.2 billion in Gross Value Added (GVA) through higher spending power.
Overall, across all working-age carers, the report estimates the total economic benefit could reach £47.7 billion a year, equivalent to 1.7 per cent of the UK’s entire GDP.
Kirsty McHugh, Chief Executive of Carers Trust, said the figures expose both the social and financial impact of leaving carers without adequate employment support.
“Millions of carers have been forced to give up paid work because of the overwhelming pressures of their caring role and the huge gaps in the UK’s social care system,” she said. “This vital research shows the massive economic benefits of helping them return to work. The proceeds of that growth could go towards fixing the very system that forces people into unpaid care.”
The report also highlights the long-term cost to young carers, estimating a £1.1 billion loss in potential productivity because caring responsibilities disrupt their education and early career opportunities.
Carers Trust and Phoenix Group are calling for specialist employment support and carer-friendly workplace policies, such as flexible working and protected leave, to help more carers find or keep paid employment.
“Employers can play a huge part by offering flexible, supportive practices,” McHugh added. “Carers have so many skills to offer, it’s time they were given the chance to use them.”
