The government has published terms of reference for a wide-ranging review into employment rights for unpaid carers, signalling that further reform is likely in the coming years. Employers may see proposals for paid carer’s leave or extended unpaid leave once the review concludes. We outline the aims and key phases, and what they may mean for employers.
Aims of the review
The Department for Business and Trade (DBT) is examining how existing and potential leave entitlements can better support employees with caring responsibilities while taking account of the impact on employers. A central focus is how the statutory entitlement to unpaid carer’s leave, introduced in 2024, is working in practice and whether there are any barriers to awareness or uptake.
The review will also assess the merits of introducing or extending a range of entitlements, including:
- a general paid carer’s leave entitlement;
- a one-off extended unpaid leave entitlement;
- paid leave for parents of seriously ill children; and
- other forms of situational paid leave, such as for those providing end-of-life care.
The terms of reference emphasise that it will consider the costs and operational impacts for employers, especially smaller businesses.
Phase One: Evidence-gathering and stakeholder engagement
Phase One began in autumn 2024 and will continue through this coming winter. It focuses on gathering evidence through commissioned research, a review of existing literature and engagement across the charity, business, trade union and academic sectors. In this phase, DBT aims to identify practical barriers to taking unpaid carer’s leave and inform the development of policy options.
Phase Two: Options development and consultation
In Phase Two, DBT will refine and test potential policy options designed to help carers balance their caring responsibilities with work. Running from winter 2025/26 and autumn 2026, it will include a 10- to 12-week public consultation on a range of proposals, including targeted measures for parents of seriously ill children.
The review will also consider “Hugh’s Law” – a proposal developed by the charity, “It’s Never You” – which advocates for financial support and dedicated leave for parents in the period following a child’s serious medical diagnosis.
Phase Three: Final report and next steps
DBT expects to conclude the review between autumn 2026 and winter 2026/27, with a report setting out its findings, its response to the consultation and an implementation roadmap for any changes. This will outline the government’s preferred approach to future support for unpaid carers and any resulting legislative or regulatory reform.
Key takeaways for employers
The review suggests that further reform of employment rights for those with caring responsibilities is likely, following the introduction of statutory unpaid carer’s leave in April 2024. Employers may face new obligations, including potential paid entitlements or extended unpaid leave. For now, employers should ensure compliance with the existing unpaid carer’s leave regime and begin to consider how additional flexibility or paid entitlements might affect workforce planning, absence management systems and cost structures. The UK government has indicated that it will pay particular attention to proportionate solutions for small businesses, but employers of all sizes may wish to participate in the upcoming consultation to shape the review’s outcome.
