During November the Department for Business and Trade (DBT) published the Terms of Reference for its review into Carer’s Leave. This review was promised as part of the Next Steps to Make Work Pay plan, which committed to ‘review the implementation of Carer’s Leave and examine all the benefits of introducing paid carer’s leave, while being mindful of the impact of any changes on employers, particularly small employers’.
The Carers Leave Act 2023, implemented in April 2024 gives approximately 2.5 million employees up to five days of unpaid Carer’s Leave a year but research shows that half of family carers are unable to take the leave because it is unpaid. Evidence from employers shows that introducing a statutory right to paid Carer’s Leave would provide vital support to family carers and help employers retain experienced staff. Research completed by Centrica found that policies such as paid Carer’s Leave could boost national productivity by over £8 billion annually.
The Terms of Reference set out the aims of the review which are to
- Understand how the current Carer’s Leave legislation is working, covering both what is working well, and if there are any barriers to family carers either understanding or using their current entitlement
- Investigate different options for paid Carer’s Leave and understanding the impact of any such change on employers, particularly small businesses
- Identify options with low or no cost to business and the Government and determine if and how these could be introduced.
- Consider if options such as an extension to the current unpaid entitlement may help unpaid family carers enter or remain in the workplace
The Terms of Reference also outline a timeline for change, with evidence gathering, options development and consultation scheduled for 2026. The process will conclude later that year with consultation response and a roadmap setting out next steps for potential reforms being published in late 26/early 27.
