The government is trying to treat unpaid care as a labour market issue, not only a family one. A new consultation launched by Employment Rights Minister Kate Dearden asks whether stronger workplace protections could help more carers stay in jobs, return sooner and avoid being pushed out of work altogether. That makes this as much a workforce participation story as a social policy one.

The economic backdrop is hard to ignore. Ministers say around three million unpaid carers are currently balancing paid work with caring responsibilities, while reduced hours, delayed returns and exits from employment carry an estimated £37 billion annual cost to the economy. For employers dealing with skills gaps and retention pressure, that figure gives the debate a very practical edge.

The measures under discussion go further than the current framework. The government is seeking views on introducing paid carer’s leave for the first time, creating a right to return to work after a period of intensive caring, and issuing clearer guidance so workers and employers better understand what protections already exist. In plain terms, the aim is to stop a temporary caring crisis turning into a permanent break from employment.

That matters because labour market attachment is often lost in small steps rather than one dramatic decision. Workers cut hours, delay a planned return or leave because the rules around flexibility, leave and job security are too thin. If ministers can make it easier for people to step back without severing their connection to work, businesses are less likely to lose trained and experienced staff for good.

Speaking at a Carers UK event hosted at TSB’s London offices, Dearden argued that people should not have to choose between employment and caring for a parent, partner or child. Care Minister Stephen Kinnock struck a similar note, saying unpaid carers play a vital role and should not be forced to compromise their work or longer-term careers because support is too weak.

The consultation also asks for views on Hugh’s Law, the campaign led by the charity It’s Never You in memory of Hugh Menai-Davis, who died from cancer aged six in 2021. The campaign calls for paid leave and financial support for parents dealing with the immediate shock and the prolonged strain that follows a child’s serious diagnosis. For families in that position, the pressure to maintain earnings while managing treatment and hospital care can make an already devastating situation even harder.

Carers UK says the consultation is a significant moment after years of campaigning for stronger rights, pointing to 2.8 million unpaid carers already combining work and care. The charity’s argument is that current employment protections still do not reflect the reality of caring, which leaves too many people reducing hours or walking away from work altogether. From a market point of view, that is a loss of labour, experience and household income that the economy can ill afford.

TSB offered a live example of what employer support can look like in practice. The bank said its policy gives colleagues an additional 70 hours of paid carers’ leave each year, and that it has seen positive results from offering more certainty when caring responsibilities intensify. That will matter to other employers reading the consultation, because it shifts the discussion from abstract rights to staff retention, morale and continuity.

None of this is law yet. The consultation remains open until 1 September 2026, and ministers are explicitly asking carers, parents and employers to respond before any final decisions are made. Still, the direction is clear enough: working carers are moving closer to the centre of employment policy, and businesses that see care as a workforce issue rather than a private problem may be better prepared for what comes next.