The analysis conducted by Cambridge Econometrics explores the impact of unpaid carers partial or total disengagement from paid employment on the economy, the government’s tax revenues and welfare expenditures, and unpaid carers’ income.

Results of the report show that unpaid caregiving can have substantial economic costs for both individuals and for the wider UK economy. Such economic costs can have further long-term implications on a carer’s career progression and future earning potential, which in turn can result in a loss of tax revenue and increased welfare expenditure for the government.

The findings highlight an economic rationale for investing in social care and in policies that better support carers’ access to employment. The economic benefits of non-working carers being supported into employment include: higher household incomes; increased Income Tax and National Insurance contributions; and reduced reliance on welfare.