A New Statutory Payment on the Horizon? Government Consults on Pay for Carers and Parents of Seriously Ill Children
Back in June, we wrote about unpaid carer’s leave and the Government review that could see it reformed.
That review has now taken a significant step forward. The Government has launched a formal consultation on employment rights for unpaid carers and parents of seriously ill children, with specific proposals now on the table, including the possibility of introducing a brand-new statutory payment.
Why This Matters
Around three million people across the UK currently balance paid employment with unpaid caring responsibilities.
Many reduce their working hours, delay returning to work or leave employment altogether, creating significant challenges for workforce retention and productivity, particularly among experienced employees aged between 45 and 64.
What’s Being Proposed?
- Paid Carer’s Leave – For the first time, the Government is considering introducing statutory pay for employees taking leave to fulfil caring responsibilities. Currently, leave under the Carer’s Leave Act is unpaid.
- A Right to Return to Work – Similar to existing maternity leave protections, employees taking carer’s leave could receive a statutory right to return to their previous role after their period of leave.
- Leave and Pay for Parents of Seriously Ill Children – The consultation proposes creating a new statutory entitlement to leave and pay for parents caring for seriously ill children, a right that does not currently exist under UK employment law.
- Clearer Guidance for Employers and Employees – The Government also plans to improve guidance to help both employers and workers better understand carers’ workplace rights, regardless of the consultation’s outcome.
The Timeline
The consultation is open until 1 September 2026.
The Government is encouraging employers, carers and parents to submit their views, with feedback helping shape any future legislation and how new rights would operate in practice.
What This Means for Employers
At present, these proposals are exactly that—proposals. No new statutory payment has been introduced, and there are currently no changes employers need to implement.
However, the direction of travel is becoming increasingly clear. Employers who have not yet fully incorporated the existing unpaid carer’s leave entitlement into their policies and payroll processes should consider doing so now.
Any future paid entitlement is likely to build upon the existing framework rather than replace it, making early preparation worthwhile.
Employers may also wish to consider responding directly to the consultation, particularly if they have a significant number of employees balancing work with caring responsibilities.
Businesses are well placed to provide practical feedback on administration, implementation, payroll processing and the financial impact of any future statutory payment.
Where Pecunia Pro Fits In
We are monitoring this consultation closely because any new statutory payment is likely to introduce new payroll calculations, eligibility requirements and reporting obligations for employers.
As the proposals develop, we’ll keep our clients informed and help ensure payroll systems and HR processes are ready well before any changes become law.
In the meantime, we’re happy to review your existing carer’s leave policy and payroll procedures to ensure they align with the current legislation.
Speak to Pecunia Pro
Want help reviewing how your business currently manages carer’s leave ahead of any future employment law reforms?
Call us on 020 8143 1529 or email info@pecuniapro.co.uk, and we’ll be happy to help.