Government Consults on Key Changes to Carer’s Leave Rights

The UK government has launched a new consultation that could significantly reshape employment rights for unpaid carers and parents of seriously ill children.

Building on the Carer’s Leave Act 2023, the consultation is reviewing whether current support goes far enough — and what additional protections may be needed to help carers balance work with their responsibilities.

At present, employees are entitled to five days of unpaid carer’s leave each year, but growing recognition of the pressures faced by carers has prompted a wider review.

What Changes Are Being Considered?
The consultation sets out several potential reforms, each aimed at improving both flexibility and financial support.

Extending Unpaid Leave
One option is to increase the current five-day entitlement, allowing carers more time away from work when needed.

A New “Right to Return”
The government is also considering introducing a statutory right to return to the same job after extended leave, similar to maternity protections.
This would provide greater job security for employees needing longer periods away from work due to caring responsibilities.

Introducing Paid Carer’s Leave
Perhaps the most significant proposal is the potential introduction of paid carer’s leave.
Options being explored include:

• Payments aligned with statutory rates (such as Statutory Sick Pay)
• Or enhanced payments, potentially up to 90% of normal earnings

Additional Support for Families
The consultation also includes proposals linked to “Hugh’s Law”, which focuses on providing leave and financial support for parents and caregivers following a child’s serious illness diagnosis.
This reflects a broader shift towards recognising the immediate and often overwhelming impact of serious health conditions on families.

Why This Matters for Direct Payments Employers
For employers within the Direct Payments sector, these changes could have practical implications.
Many of PayPacket’s clients are individual employers — often managing care arrangements for themselves or a family member — rather than traditional businesses with HR departments.
Changes such as paid leave or extended absence rights would:

• Increase the complexity of payroll calculations
• Require clear understanding of eligibility and entitlement rules
• Impact funding arrangements, particularly where Local Authority budgets are involved

At the same time, these reforms could provide much-needed support for carers, helping them remain in employment while continuing to provide essential care.

PayPacket’s View
At PayPacket, we see every day how closely employment and care responsibilities are linked.
When payroll is right, it goes unnoticed — but when it goes wrong, it can have real-life consequences for the individuals and families relying on that support.
Strengthening rights for carers is a positive step. However, it is crucial that:

• Any new entitlements are clear and workable in practice>
• Individual employers are given appropriate guidance and support
• Payroll processes are designed to remain simple, compliant, and reliable

Without this, well-intentioned reforms risk adding complexity to an already challenging system.

What Happens Next?
The consultation is open until 1 September 2026, giving carers, employers, and organisations the opportunity to provide feedback before any changes are implemented.
We will continue to monitor developments closely and keep our clients informed as the government’s proposals evolve.

Need Support?
👉 Contact PayPacket today to ensure your payroll remains compliant and stress-free