Supporting the self-employed with unpaid caring responsibilities
This report reviews the experiences of unpaid self-employed carers and concludes with a series of recommendations for government on how to improve support for this cohort.
Executive Summary
- Unpaid carers provide a vital and often underappreciated function to society – 445,000 of which also operate as self-employed
- Just 8% of unpaid self-employed carers are in receipt of Carers Allowance due to strict eligibility rules
- Carers reported that self-employment offered important flexibility that made their caring responsibilities possible
- But drawbacks included misunderstandings with clients, difficulty managing business admin alongside caring duties, and ineligibility for financial support
Self-employment provides unpaid carers with the flexibility to manage caregiving duties, yet also presents obstacles, particularly in areas like financial security, navigating government support, and balancing business responsibilities.
Many carers report difficulties in accessing Carer’s Allowance due to the low earnings threshold, complex qualification criteria, and an unclear application process.
Additionally, self-employed carers often find it challenging to communicate their caregiving responsibilities to clients, potentially facing discrimination or lost opportunities as a result.
Introduction
The vast majority of care in the UK is provided not by doctors, nurses or care workers but by family and friends.[1] Most people will either need care, or become an unpaid carer in their lifetime. The most recent Census recorded the number of unpaid carers at 5.7 million[2] - meaning one in ten (10%) of the nation’s population were providing unpaid care in 2021.
We also know that women are more likely to become carers and to provide more hours of unpaid care than men, often at the expense of their careers.[3]
Despite the support for unpaid carers now being worth £162 billion a year – an increase of 29 per cent since 2011[4]– this often fails to translate into public policy recognition and support.
Research from Carers Trust revealed that 91 per cent of unpaid family carers felt ignored by the government and 86 per cent agreed that successive governments have ignored the needs of unpaid carers for a long time.[5]
Similarly, relatively little is known about those who are self-employed and unpaid carers. The Census indicates there are 445,000 unpaid self-employed carers operating in the UK – comprising eight per cent of all unpaid carers.
We know that these individuals benefit from the autonomy and flexibility provided by self-employment[6], but becoming an unpaid carer can also put plans for personal or business development on hold.[7] Concerningly, being a self-employed carer also means that you’re twice as likely to be in poverty compared to employee counterparts.[8]
In this report, we assess the experiences of unpaid self-employed carers and review if current support works for this cohort, before concluding with a series of policy recommendations for government.
Experiences of unpaid self-employed carers
As part of the research project, we conducted a series of interviews where unpaid self-employed carers shared their experiences of operating as a self-employed individual whilst balancing unpaid caring responsibilities.
Through this, we reviewed how the current support system works for these individuals, the advantages provided by the flexibility and control offered by self-employment, but also the challenges specific to running a self-employed business alongside caring responsibilities.
It is important to consider that there is no single experience of caregiving. Unpaid carers each have a unique set of circumstances that have required them to take on the responsibility of caregiving.
However, many commonalities exist, predominantly around navigating support from government, making clients aware of their situation, access to carers allowance and accessing respite care.
Advantages of working for yourself whilst caring
Autonomy to work around caring responsibilities was considered a major advantage of being self-employed, with some interviewees even leaving the rigidity of a conventional 9am-5pm employment for self-employment explicitly for the flexibility it offers.
This flexibility extends to being able to take time away from work for appointments, for unexpected responsibilities, or simply as some respite.
Another advantage reported in the research was the ability to choose clients that they felt would best support them, or at least understand their responsibilities.
Navigating support from government
Another common theme that emerged from our discussions with unpaid carers was not knowing or understanding the importance of being formally recognised as an unpaid carer by local government.
Registering as an unpaid carer ensures that carers can access the support provided by local and healthcare authorities. But there is relatively little information on where and how to register as an unpaid carer. Unlike other support services, there is no centralised government page for registration; instead, local councils have their own processes and teams to contact.
Funding and resource issues in support services were common themes during our research, along with the resulting impact on carers' ability to contact or access support from these services.
Furthermore, health and social care systems and local council services are often separate which can cause further complexity. Carers reported frustration at a lack of information-sharing between services and no specific guidance or signposting for those that are self-employed.
Dealing with business responsibilities
Another common theme in our discussions was the challenge of running a business and dealing with all the responsibilities that come with that whilst also caring. Some previous discussions have even revealed that carers have missed deadlines or made mistakes in their financial reporting due to the distraction of becoming a carer.[9]
Many wanted additional business support that’s exclusively available for those balancing caring or other responsibilities. Some respondents wanted to see free or discounted access to financial advisers or an accountant to ease this burden and mitigate the potential of making a mistake in their tax filings. It was even suggested that community workhubs or co-working venues could be utilised to provide this service, with carers coming together to support one another whilst also having the opportunity to seek external support with their tax affairs.
Accessing Carer's Allowance
Carer’s Allowance is a means-tested benefit that is paid to those that spend at least 35 hours a week caring for someone with an illness or disability. It's paid at a rate of £81.90 per week (rising to £83.29 from April 2025).
However, the current benefit is unavailable to those that earn more than £151 per week (rising to £196 from April 2025) after certain deductions such as tax, national insurance and some expenses.
One common theme that emerged from our discussions with unpaid self-employed carers was the low earnings threshold that applied to the carers allowance. Whilst the government is increasing the eligibility threshold and the amount paid per week from April 2025, many unpaid self-employed carers will continue to hit this relatively low earnings threshold.
According to the Family Resource Survey from 2023, the number of households in receipt of Carers Allowance as well as a self-employed income was 37,246 – equivalent to just eight per cent of all unpaid self-employed carers.[10]
Similarly, for some unpaid self-employed carers, working out whether they qualified for Carers Allowance proved challenging due to the rules around company expenses and being able to also claim some of the cost of paying for external care whilst they work.
There was a consensus that clearer information from the Department for Work and Pensions about the exact qualification criteria for Carer’s Allowance would be beneficial. This could potentially include a tool where unpaid self-employed carers could enter their earnings for the past three months, expenses and other qualifying costs – such as paying for external care – that would then provide an immediate indication of whether they will qualify for the benefit.
Letting clients aware of their situation
Another common concern shared by unpaid self-employed carers was a lack of understanding or appreciation by clients that they may have unexpected caring responsibilities.
Unlike employers – who are more likely to establish a dialogue with employees with caring responsibilities and implement adjustments – clients may not be as flexible when caring responsibilities impact on project delivery.
Similarly, we also heard from some freelancers that they have been overlooked for a role because the client preferred to go with another freelancer that didn’t have the caring responsibilities.
In contrast, some freelancers reported that they didn’t usually disclose their caring role to potential clients. This in turn caused difficulties for some when delivering a project or piece of work whilst additional caring responsibilities were required.
Conclusion
Running a business whilst also balancing caring responsibilities creates a unique set of challenges for the self-employed. The unpredictability of caring means that the responsibilities of running a business, such as filing tax returns, can be put on hold. It’s clear that these carers would benefit from additional business support, whether it be access to a financial adviser or support from fellow unpaid self-employed carers.
Similarly, unpaid self-employed carers report some difficulties in communicating their caring responsibilities with potential clients, fearing discrimination or misunderstanding about not fulfilling the work. Alongside these concerns, the strict earnings threshold for Carer’s Allowance means the majority of unpaid carers are unable to claim government support.
Policy Recommendations
1
Expand the scope of Liz Sayce’s independent review to include the upper earnings limit for Carer’s Allowance, taking into account the use of this benefit to cover the fluctuating incomes of self-employed carers.
2
Reform the eligibility rules for Carer’s Allowance so that those caring for 20-35 hours have access to the benefit.
3
Halt repayment demands for Carers Allowance by the Department for Work and Pensions until Liz Sayce’s independent review has concluded.
4
Local councils should utilise community workhubs or co-working venues to provide networking days for unpaid self-employed carers, where they can benefit from free financial advice and the support of other carers.
5
Provide investment to the Carers Trust’s Working for Carers project so that it can be rolled out nationally and train advisors to recognise and put forward self-employment as a valuable career option for carers.
6
Provide respite care allowance to those with work/self-employed commitments and for those unable to work through their business.
7
Integrate the information held by local support services with health and social care so that carers can easily coordinate external care, appointments and support.
Appendix
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