Key Facts & Figures
- A report by Carers Trust (in partnership with Phoenix Group) found that the total “lost labour” of unpaid carers in the UK is up to £47.7 billion per year. (Carers Trust)
- That £47.7 billion figure is equivalent to about 1.7% of UK GDP. (Carers Trust)
- The report title is “The hidden cost of unpaid care: The economic price of locking carers out of work”. (Carers Trust)
- Of nearly six million unpaid carers in the UK, almost 2.7 million are not in paid employment. (Carers Trust)
- Among those, 524,000 are currently unemployed but could work with the right support. (Carers Trust)
- If those 524,000 carers were able to move into full-time paid work, the report estimates:
- Up to £10.1 billion additional household income. (Carers Trust)
- Up to £2.8 billion in reduced welfare/benefits payments. (Carers Trust)
- Up to £4.0 billion more in Income Tax + National Insurance contributions. (Carers Trust)
- Combined, up to £16.9 billion/year boost to economy + households from that one group. (Carers Trust)
- The report also estimates that if carers were better supported (and could participate more in employment), the wider economy’s Gross Value Added (GVA) could increase by up to £20.4 billion. (Carers Trust)
What the Loss Means & How It’s Calculated
- The “lost labour” refers to the idea that unpaid carers spend time providing care (for family/friends) and as a result are often unable to work, reduce their working hours, or take lower-paid roles. This means a loss of potential income, tax contributions, and economic output. (Action for Carers Surrey)
- The estimate uses modelling based on how many carers are not in paid work, their potential labour market participation, and the economic output/value of that work if they were able to engage. (Specifically, the consultancy Cambridge Econometrics worked on this report. (theHRDIRECTOR)
- The calculation covers lost household incomes (which in turn reduces consumption), lost tax/revenue to government, higher welfare/benefits costs, and lower economic output (GVA). For example: the report estimates that supporting more carers into employment could yield £7.2 billion in increased GVA. (Carers Trust)
- The context: Unpaid care is not being compensated financially (hence “uncompensated care work”) and often occurs alongside or instead of paid employment. The burden falls heavily on carers (often family members).
Why It Matters
- From a macroeconomic perspective: £47.7 billion is a substantial drag on the UK economy — reducing labour supply, increasing inactivity, lowering tax contributions, and increasing welfare costs.
- From a social/household perspective: Carers face financial hardship — reducing hours, taking lower‐paid jobs, sometimes leaving the workforce altogether. That harms lifetime earnings, pension contributions, and personal welfare. (Action for Carers Surrey)
- From a policy perspective: There is a strong economic case for interventions that support unpaid carers to work (or return to work) if they wish — for example through flexible working, carer-friendly policies, training, support services, paid carer leave. The report argues that the economic gains far outweigh the costs of implementing such support. (Carers UK)
- A key insight: The value of unpaid care provision is enormous. For instance, separate research estimates the value of unpaid care in the UK at ~£184.3 billion/year (i.e., if paid for, that is what it would cost). (centreforcare.ac.uk)
- For employers, supporting carers can improve retention, reduce absenteeism and increase productivity — contributing indirectly to economic value.
- For the government, reducing barriers to carer employment can improve tax revenue, reduce benefit dependency, and unlock economic growth.
Important Caveats & Discussions
- The figure is an estimate (“up to £47.7 billion”) and comes with modelling assumptions (about who could work with support, what their earnings would be, etc.). (Carers Trust)
- It focuses on working‐age unpaid carers and the impact on employment participation — it does not fully capture all unpaid care work (for instance, older carers, those doing care outside employment frameworks, or the full societal value).
- The modelling assumes that carers who are currently inactive could work full time if supported — in reality, some may prefer part-time work, or have constraints.
- Tackling the issue of unpaid care and employment is not just about enabling carers to work — it also requires adequate formal care services, housing, transport, training and employer support. Without a broader infrastructure, simply expecting carers to enter employment may not realise full benefits.
- The distributional issue: The burdens of unpaid care are often gendered (women do more unpaid care), and may disproportionately fall on lower-income households. So equality and fairness issues intersect with the economic argument.
- While the economic losses are large, they are part of a much larger picture of labour market inactivity, ill health, disability, and demographic change. For example, a separate government statistic estimated the cost of working-age ill-health and disability that prevents work to be between £240-330 billion per year. (GOV.UK)
Implications & What Could Be Done
- Employer policies
- Flexible working hours, job sharing, remote/hybrid working for carers.
- Carer-friendly leave policies (e.g., paid carer leave) — a report by Carers UK estimated that introducing paid carer’s leave could yield productivity gains of ~£8.2 billion per year. (Carers UK)
- Support programmes for carers to maintain skills, re-enter employment, or manage dual responsibilities (work + care).
- Government & public policy
- Investing in social care infrastructure (reducing the demand for unpaid care by families).
- Financial support and incentives for carers (allowances, tax breaks, pension credits) so that care responsibilities don’t force withdrawal from labour market.
- Training, upskilling and job-matching programmes for carers who wish to work but face barriers.
- Recognise unpaid care in labour market/inactivity statistics and policymaking (so that strategies to reduce economic inactivity include carers explicitly).
- Societal & economic benefits
- Enabling more carers to work means more labour supply, more tax revenue, less benefits dependency, more consumption in the economy — all of which help growth.
- It also reduces long-term risk: carers who leave work may see reduced pension rights, savings, and higher poverty risk in later life.
- Improving carer employment can have positive knock-on effects: better mental/physical health for carers, improved care outcomes for those being cared for, reduced pressure on formal services.
My Commentary
- The £47.7 billion figure is striking — it underscores that unpaid care is not just a social or ethical issue, but a major economic one. Too often unpaid care is invisible in policy debates about labour market participation and productivity.
- It highlights how labour market inactivity is not exclusively a “skills” or “motivation” issue — for many carers the barrier is structural: time constraints, inflexible jobs, lack of support.
- From a macro-perspective, the UK struggles with productivity and labour supply issues; tapping into the “hidden” labour of carers is a smart place to look.
- But there is a danger: framing unpaid carers purely in economic terms may risk instrumentalising them — they are people, not just potential workers. The real objective should be supporting choice (to work if they wish) and reducing unnecessary trade-offs (between caring and earning).
- I also note the gender dimension: unpaid care roles often fall to women, meaning the economic loss also perpetuates gender inequality in labour market outcomes, lifetime earnings and pensions.
- A further point: While enabling more carers into work is beneficial, you still need strong formal care services — because if there is no formal support, unpaid care demands will continue to rise (especially given ageing populations). So investment in the care ecosystem is foundational.
- Finally, this highlights the need for employers to recognise carer responsibilities as part of workforce planning, diversity & inclusion, and retention strategies.
- Here’s a full-fledged commentary on the claim that the UK economy loses nearly £48 billion due to unpaid (“uncompensated”) care work—complete with details, case-studies and my own reflections.
Key Findings
- The charity Carers Trust (in partnership with Phoenix Group) published a report titled “The hidden cost of unpaid care: The economic price of locking carers out of work.” They estimate the annual “lost labour” of unpaid carers is up to £47.7 billion. (Carers Trust)
- This £47.7 billion figure is said to equate to about 1.7% of UK GDP. (Carers Trust)
- Breakdown of the “lost labour” numbers:
- Of nearly 6 million unpaid carers in the UK, ~2.7 million are not in paid employment. (Carers Trust)
- Among these, 524 000 are currently unemployed but could work if given appropriate support. (Carers Trust)
- If those carers were able to enter full-time paid employment, the modelling suggests:
- Up to £10.1 billion additional household income. (Carers Trust)
- Up to £2.8 billion reduction in welfare/benefit payments. (Carers Trust)
- Up to £4.0 billion increase in Income Tax + National Insurance contributions. (theHRDIRECTOR)
- Combined, this scenario yields up to £16.9 billion/year benefit to carers’ households + economy. (Carers Trust)
- Further increases in Gross Value Added (GVA) from increased spending and consumption: Up to £7.2 billion in additional GVA. (theHRDIRECTOR)
- Additional context: The overall value of unpaid care (i.e., if it were paid) is estimated at £184.3 billion/year in the UK. (centreforcare.ac.uk)
Case Studies & Illustrative Examples
Case Study 1: Individual Carer Experience
From the Carers Trust report:
“I had to stop working in 2011 to become a full-time carer for my mum. Before that I had worked in customer service for 49 years. … Since then … I’ve gone for two interviews … the programme has given me my confidence back…” (Carers Trust)
Commentary:
This illustrates how caring responsibilities can force someone out of paid work (or make re-entry difficult) — resulting in loss of income, loss of work experience progression, weaker pension accrual, and a drag on the economy.Case Study 2: Regional Economic Value of Unpaid Care
In London, a study found that unpaid carers contribute more than £19 billion per year in economic value. (The Standard)
Commentary:
This shows the scale of unpaid care at the local/regional level. If carers weren’t providing this care, either paid services must fill the gap (costing public/private money) or the care simply wouldn’t happen — both of which are significant for the economy.Case Study 3: Employer Perspective & Carer Leave
Research by Carers UK on paid carer leave estimates that introducing paid carer’s leave could boost productivity by £8.2 billion per year, at a cost of only £5.5-£32 million to government. (Carers UK)
Commentary:
This is important: it suggests that supporting unpaid carers to stay in or return to work isn’t just a social good—it has economic payoff via increased productivity, lower turnover, less absenteeism, higher engagement.
Why This Matters
- Labour supply & workforce participation: Carers who withdraw from paid employment represent a loss of labour supply. Especially as many carers are of working age, their non-participation reduces overall employment, economic output and tax revenue.
- Household income and poverty risks: Carers often face financial penalty—reduced hours, lower pay, or no pay—leading to increased poverty risks. The report shows many carers end up with zero private pension savings by ages 60-65. (theHRDIRECTOR)
- Productivity & economic growth: By enabling carers who wish to work to do so (with support), there is room to unlock hidden economic potential. The modelling suggests billions of GVA gains.
- Cost of inaction: The “drag” on the economy isn’t just theoretical — the £47.7 billion figure represents real lost output, tax, consumed goods, services foregone.
- Policy leverage point: Because the scale is so large, interventions (like carer-friendly employer policies, paid carer’s leave, upskilling programmes, flexible work) may yield high returns.
Key Caveats & Refinements
- The number £47.7 billion is an estimate based on a model (commissioned study) with assumptions about which carers “could work” and at what capacity. The phrase “up to” is important. (Carers Trust)
- It focuses on carers of working age and their employment outcomes; it doesn’t capture all unpaid care (especially older carers, informal/partial work).
- Some of the value (the £184 billion figure) reflects care provided (i.e., hours of care), while the £47.7 billion reflects lost labour/income due to unpaid care. So the two metrics capture different things.
- Support required to enable carers to work (child/elder care services, respite, workplace flexibility) itself has cost/implementation challenges. The net effect will depend on how well such support is delivered.
- The modelling assumes that if carers were supported into employment, they would earn/pay at certain levels; real-world transitions may be slower, partial, or constrained by caring intensity.
My Commentary and Reflections
- The magnitude of the figure is striking: nearly £50 billion — it elevates what often is framed as a “social issue” (unpaid care) into an economic issue. That matters for policy framing—carers are not just a social welfare concern, but an economic asset & resource.
- I believe this helps shift thinking: supporting unpaid carers isn’t only a cost centre (in terms of welfare or benefits) but a potential growth lever (unlocking labour, skills, productivity).
- One question: How much of the “lost labour” is from carers who would like to work but cannot versus those who choose not to or elect to focus on caring? The modelling somewhat addresses “could work with support” (524 000 carers) but the real world includes many nuances.
- Another reflection: This analysis also points to broader systemic issues—lack of adequate formal care services forces many into unpaid care, which then feeds into lost employment. So tackling the loss requires systemic investment in care infrastructure as well as employment policy.
- From the business/employer perspective: companies that proactively support carers (flexible hours, paid carer leave, job redesign) may reap benefits (retention, productivity, morale) and contribute to national economic uplift.
- There are strong equity questions: unpaid care tends to fall disproportionately on women, on certain ethnic groups, and on lower income households. The economic loss therefore intersects with gender, race, and social inequality.
- Ultimately: If the UK is facing productivity stagnation and labour supply challenges (e.g., ageing population, skills shortages), then tapping into the “hidden reserve” of carers who might work (with support) presents a concrete policy opportunity.