Evidence suggests that unpaid carers – the number of whom increased by 4.5 million at the height of the pandemic to 13.6 million¹ with one in seven likely to be of working age² – are showing signs of getting ahead of the game with regards to proactive planning for their loved ones’ care needs, as opposed to simply reacting at the point of crisis.

This is encouraging news, not only for carers’ mental health, but also for their financial wellbeing. Average care costs can be £40,000 – £60,000 a year and a quarter of people end up running out of money³; a figure that increased by a third (37%) during the pandemic.⁴

This year, with the cost-of-living crisis, carers have faced unprecedented pressure on their finances. A quarter of carers (25%) said they were cutting back on essentials, such as food or heating, and over three quarters (77%) said that the rising cost of living is one of the main challenges they will face over the coming year. Over half of carers (63%) said they were extremely worried about managing their monthly cost.⁵

Working carers planning ahead more
Against this backdrop, Tracey Funnell, Business Manager for Legal & General Retail Retirement Income’s Care Service, says their data shows that awareness of the need to plan ahead when it comes to anticipating the future care needs of loved ones seems to be increasing. “Based on our experience, expert help with care needs and funding requirements is usually accessed at the point of crisis; the day an elderly relative is released from hospital, for example,” explains Tracey.

“However, we’ve found that over half (54%) of calls in to our Care Concierge service – access to care experts included as part of our Group Income Protection products – were from those investigating care on behalf of loved ones who were not in immediate need of care services. Discussing care options at an early stage can help loved ones to stay independent for longer and, where relevant, these conversations can lead to discussions about care funding and individuals being signposted to independent financial advisers who specialise in later life care.

“This kind of advance planning represents a significant change. And will hopefully go some way towards addressing the fact that far too many self-funders end up running down their savings to almost nothing.” ⁴

So, what’s prompting this proactivity? The answer to that is unclear. Maybe it’s because the issue of accessing and funding social care has been in the media spotlight of late, as a result of the government announcing a delay to social care reform. Maybe it’s because many unpaid carers were able to do more to help loved ones during the various Covid-19 related lockdowns and working from home; these commitments now becoming ever more challenging due to new ways of working. Or perhaps it’s because employers are doing more to support their working carers.

One thing’s for sure, supporting and retaining employees with caring responsibilities remains a critical workforce issue, with working carers facing unparalleled pressures.

Here are three ways in which employers can help:

• Follow best practice. Carers Trust provides some useful information, on the practical steps employers can take to support working carers, including signposting to other useful resources.
• Make better use of employee benefits. Look into what’s available at no extra cost as part of existing employee benefits. Group Income Protection, for example, might include support for carers, such as direct telephone access to care experts who can help individuals navigate the state funding system, NHS and social care services, plus discuss care options. Employee Assistance Programmes (EAPs) also provide access to legal and financial information, plus accredited counsellors for help with everyday mental health support, including personal debt management.
• Provide unbiased signposting to specialist independent financial advice. Such signposting might be provided already where the above services are provided. If not, it’s worth speaking with the Society of Later Life Advisers (SOLLA), for example, to find out about signposting to their Find an Adviser service to locate a local independent adviser who can help. All the advisers listed have successfully achieved Later Life Adviser accreditation and can provide advice on funding vehicles such as immediate needs annuities or equity release.

¹ https://www.carersuk.org/news-and-campaigns/press-releases/unpaid-carers-worried-about-the-financial-strain-on-top-of-continued-reduced-access-to-support

² https://www.employersforcarers.org

³ https://lgiu.org/report-independent-ageing/

⁴ https://www.ageuk.org.uk/latest-press/articles/2020/07/a-year-on-from-the-pms-pledge-that-no-one-would-have-to-sell-their-home—14-people-are-wiped-out-financially-by-care-bills-each-day/#_edn2

⁵ https://www.carersuk.org/media/p4kblx5n/cukstateofcaring2022report.pdf