Introducing paid carer’s leave from work could save Stormont over £4 million in benefit payments every year, according to new research.

The analysis from Carers NI suggests that if a new right to carer’s leave prevented even 1% of those who are currently juggling employment with caring for a sick or disabled loved one from leaving their jobs and applying for Carer’s Allowance, 1,030 people would stay in work and the NI Executive would avoid spending £4.3 million per year in extra Carer’s Allowance payments. The UK Exchequer could also expect to benefit from nearly £6 million per year in additional income tax and National Insurance as a result of those carers remaining in the labour market.

With surveys showing that 1 in 3 people with caring roles in Northern Ireland have left work due to the demands of caring, ^[1] Carers NI believes its modelling is likely under-estimating the positive impact of carer’s leave and called on the Economy Minister to prioritise the ‘win-win’ policy in his new Employment Rights Bill. ^[2]

Craig Harrison, Public Affairs Manager at Carers NI, said:

This new analysis underlines the significant welfare savings and economic boost that could result from a new system of paid carer’s leave in Northern Ireland. Too many people with caring roles are currently being forced out of the labour market because of the lack of workplace support and legislating for paid carer’s leave could go a long way to addressing that – keeping them in their jobs and contributing to the economy. Stormont is used to following the lead of Westminster in updating our employment laws, but the Economy Minister has the chance to lead the way and deliver a win-win policy that would be the envy of all of our neighbours. We’re urging him to grasp that opportunity.”

The analysis from Carers NI comes as economists, trade union leaders and carer charities from across Northern Ireland have also written to the Economy Minister today calling on him to include paid carer’s leave in the new employment rights legislation. The letter argues that unpaid carers are being denied equal access to the labour market and that while “no single approach can fix this, one of the most important interventions available is the delivery of dedicated and paid caring leave from work.”

Notes to editors

1. Carers NI (2023). State of Caring survey 2023.
2. Economy Minister Conor Murphy MLA has indicated that he will bring forward an Employment Rights Bill before the end of the current Assembly mandate to ensure the employment law framework in Northern Ireland remains fit for purpose and operates effectively for both businesses and workers.