Recent research from the Joseph Rowntree Foundation has for the first time calculated the ‘caring penalty’, or the amount lost in earnings by those who take on the role of a family carer. Forced to cut down on hours worked or leave work altogether, family carers may be pushed into poverty while providing invaluable care. The longer people are undertaking the role of a family carer the greater the impact on their finances, as they give up opportunities for career progression and wage growth.
The key research findings:
- Family carers experience an average pay penalty of £487 per month, or nearly £6,000 per year, rising to £744 per month or nearly £9,000 per year after six years of providing unpaid care
- 30% of those who were in paid work when they started providing 20 or more hours of unpaid care per week were no longer working after five years of caring out a caring role
- 25% of family carers who had to give up work at the time of taking on an unpaid care role do not receive a pension, Carers Allowance or Universal Credit. For over two-thirds of these carers, these benefits replace less than half of their previous earnings
- JRF is calling for the contributions of our unpaid carers to be valued through Statutory Carer Pay:
As a result of this research the Joseph Rowntree Foundation in calling for the contributions of our family carers to be valued through Statutory Carer Pay:
- Carers would be eligible for 39 weeks of paid leave for one year, with the ability to take this leave flexibly
- The policy would be funded by the Government and, at a minimum, paid at the same level as Statutory Maternity Pay
Although the Carer’s Leave Act 2023 will give family carers one week of unpaid leave per year, and the Employment relations (Flexible Working) Act 2023 will provide the right to ask for a change in working arrangements from day one they are a step in the right direction but not the solution.
The combined acts do not reflect the importance of family carers to our society and fails to give carers the financial recognition for the work they do. It is estimated that around 65,000 carers would benefit from a policy such as this each year, and the majority would stay in work
Read the full report here
