Employment Rights Act 2025

Care News & Policy Watch Update: 24 January 2026 The Employment Rights Act 2025 Traffic light: 🟠 Be aware (no urgent action for most self-employed carers) What's changed Two developments in January are worth noting: The Employment Rights Act 2025 is now law (Royal Assent: 18 December 2025) and will be introduced in stages across 2026–2027. MPs have criticised senior DWP officials over the Carer's Allowance overpayments scandal. Ministers have ordered a reassessment of around 200,000 cases, with debt relief expected for many unpaid carers. Who this affects Most relevant to: Carers who are employed (care homes, domiciliary employers, agencies with employed staff) — the Employment Rights Act changes apply most directly here. Unpaid carers (Carer's Allowance claimants) — the overpayments review affects these households. Indirectly relevant to: Self-employed carers, because sector expectations around rights, documentation, and “good practice” often shift when employment law changes. What this means in real life Nothing changes overnight for self-employed carers. This is not a “you're now employed” situation. Over 2026–27, you may notice: more questions from families about “rights”, working time, rest, and what's “allowed” employers and agencies tightening contracts and procedures, which can influence expectations across the wider care sector The Carer's Allowance review is a reminder that carers are being heard and that systems can be challenged when unfairness occurs — but this issue mainly affects unpaid carers and benefits, not self-employed care income. 🟣 The system doesn't reflect real life — and that's exactly why carers need clearer information and stronger boundaries.