TUC: Women 7 times more likely than men to be out of work due to caring commitments

New TUC analysis finds more than 1.46 million women are kept out of the labour market because of their caring responsibilities

  • Women in their 30s are hardest hit – one in 10 women in this age group drop out of the jobs market because of pressures of looking after their family 
  • Union body calls for funded childcare and flexible working rights for all to keep women in work and to address the gender pay gap 

Women are around seven times more likely than men to be out of the labour market due to caring commitments, according to a new analysis published by the TUC today (Wednesday). 

The analysis of official statistics – published as the annual TUC women’s conference starts in London today – finds that more than 1.46 million women are unable to work alongside their family commitments, compared to around 230,000 men. 

Women in their 30s hardest hit 

The research shows that women in their 30s are the hardest hit compared to men of the same age. 

One in 10 women in their 30s – more than 450,000 women – is out of the labour market because of caring responsibilities – compared to just one in 100 men in their 30s. 

So, women in their 30s are 10 times more likely than men to be unable to work due to family commitments at home. 

But at every age – from the very start right through to the end of their careers – women are more likely than men to have to drop out of paid work because of caring commitments. 

The TUC says that this illustrates that high-quality childcare that is free at the point of use should be available for all parents from the end of maternity leave to the end of primary school. This would help women stay in their jobs and continue with their careers once they have children. 

The union body also found that women shoulder most of the care for older and disabled relatives too. But the TUC warned that the staffing crisis in social care was making it harder for women to stay in work alongside their caring responsibilities.  

Women and low-paid work 

The new TUC analysis also finds that women are much more likely than men to be working in low-paid jobs – and are far less likely to be in high-paid work. 

Women make up two-thirds (65%) of the 10 lowest-paid occupations in the UK, like jobs in cleaning, catering and care. 

But less than two in five (39%) women are working in the 10 highest-paid occupations, in industries like finance, law and IT. 

Gender pay gap 

The gender pay gap for all employees currently stands at 14.9%, and it widens with age.  

Analysis published last month by the TUC found that this pay gap means that the average woman in paid employment effectively works for free for nearly two months (54 days) of the year, compared to the average man in paid employment. 

The union body says that at current rates of progress, it will take more than 20 years to close the gender pay gap. 

Flexible work 

Millions of people across the UK work flexibly. The TUC says that flexible work helps parents and carers balance their work and caring commitments and stay in their jobs. 

But a survey by the union body found that half of working mums don’t get the flexibility they request at work. 

The TUC says the law needs to be changed to require all jobs to be advertised with the possible flexible working options stated – and to give all workers the legal right to work flexibly from their first day in a job. 

Normalising and improving flexible working options would also encourage more men to take up these options and share caring responsibilities, says the TUC.

 TUC General Secretary Paul Nowak said: “Women shouldn’t have to give up or cut down paid work because they can’t find or afford the right care for their children or older or disabled relatives.  

“Too many women take a financial hit from caring for the rest of their lives – and it is a key driver of the gender pay gap. At the current rate of progress, it will be 20 years before women get pay parity with men. 

“We desperately need funded high-quality childcare for all families, free at the point of use, so women can stay in work once they have kids. 

“Ministers must change the law so that every single job is advertised with the possible flexible options stated, and all workers must have the legal right to work flexibly from their first day in a job. 

“And ministers must fix the staffing crisis in social care so every family can find and afford the social care they need.”  

Government action needed 

The TUC is calling on ministers to act now to keep women in work, make sure they are paid fairly, and to properly address the gender pay gap. The union body wants the government to: 

  • Introduce funded, high-quality childcare, available to all, free at the point of use. This would begin when paid maternity leave ends and would enable women to stay in work when they have children. 
  • Create greater flexibility in all jobs. There should be a duty on employers to list the possible flexible working options for each job when it is advertised. And all workers should have a day one right to work flexibly – not just the right to ask – unless the employer can properly justify why this is not possible. Workers should have the right to appeal any rejections. And there shouldn’t be a limit on how many times a worker can ask for flexible working arrangements in a single year. 
  • Strengthen gender pay gap reporting:  From 1 April 2017, the government ruled that large companies must publish information about the difference between average male and female earnings. The TUC believes the government must go further and wants employers to be made to carry out equal pay audits, and to produce action plans to close the pay gap in their workplace. The TUC also wants companies that fail to comply with the law to receive instant fines.  
  • Fix the staffing crisis in social care: There are a record 165,000 vacancies across adult social care. The TUC believes this is placing a huge strain on women with caring responsibilities for family members. The TUC says the government must work with unions and employers to tackle widespread insecure work and poverty pay in the sector which are driving high staff turnover rates. 

Over 50s to be hardest hit by the cost-of-living crisis and the financial impact of the Covid pandemic

A report by leading UK data scientists has revealed that the over-50s are being hit hardest by the current financial crisis and could face a lifetime of financial insecurity.  

That’s according to new research from the University of Edinburgh’s Smart Data Foundry, supported and funded by abrdn Financial Fairness Trust. 

According to the report, economic inactivity rates have risen a third amongst the over 50s since 2019, and people aged 50-54 face double the financial vulnerability risk than those aged 70-74.  

Findings reveal that people in their 50s and 60s are facing the ‘perfect storm’ of circumstances including redundancy, ill health or caring commitments combined with a lack of savings and pension provisions.   

To offset this loss of income, many people are being forced to withdraw lump sums from their pension pots to deal with pre-retirement income shocks.  

And with the majority of pension pots worth under £30,000, this is causing knock-on issues with income tax and entitlement to benefits.  Worryingly, the research also identified that those people who do cash in their pension pots early are 1.75 times more at risk of financial vulnerability in the future.   

To tackle this, Smart Data Foundry is calling on the Department of Work and Pensions to act now to reduce the risk of pension assets being spent before retirement. It recommends an increase to the current capital limit of £16,000 for means tested benefits and, for those on Universal Credit, the reform of the Support for Mortgage Relief (SMI) loan facility by removing the zero earnings rule. 

Chair of Smart Data Foundry, Dame Julia Unwin, explains: “We are seeing a pattern of people in their early to mid-fifties going from being in positions of comfortable, middle-aged breadwinners eyeing their future retirement over the horizon, to a generation suddenly finding themselves facing long-term financial hardship.  

“A combination of being unable to secure viable work, confused messaging over pensions, little by way of state aid, and the savage cost-of-living rises resulting in many making decisions that could have long-term negative consequences.  

“With this report and our key recommendations, we are calling for UK Government to intervene to protect and support the most vulnerable before it is too late. If they don’t act now, we will undoubtedly see even bigger problems in the years ahead. Data doesn’t lie; the evidence is there – older workers are at very real risk of financial vulnerability, but it is not yet too late to act.” 

The research study also uncovered a widespread lack of understanding about the benefits system, confusion about claims processes, and hardship arising from payment frequency.  To improve the transition to retirement, the report calls for increased government investment in the Pension Wise guidance service and expansion to include the state pension. 

According to the findings, older workers are encountering barriers to returning to work, including lack of digital skills, unavailability of flexible working, lack of specific government initiatives, ageism, psychological barriers, and retraining needs.  

The longer the unemployed worker remains out of work, the harder it is for them to find a suitable position and the greater their risk of falling into forced retirement.

The report calls for a government-funded employment programme targeted at those who need support in changing careers, starting from the first day of unemployment for the over 55s. 

Lead researcher Dr Lynne Robertson-Rose from the University of Edinburgh added: “We set out to understand the financial vulnerability amongst those in their 50s and 60s and have been surprised by the bleak picture that the data paints.

“Any disruption in earning capability in the decade before the state pension is forcing older workers to draw down on savings earmarked for retirement with little ability to top up the pot, leading to the risk of financial vulnerability becoming lifelong. 

“We have access to rich data supplied to Smart Data Foundry by UK financial institutions and these insights have furnished us with the information that enabled us to make policy recommendations.  It also flags  opportunities for the financial services and fintech sector to innovate in order to help individuals better manage their finances.” 

Karen Barker, Head of Policy and Research at abrdn Financial Fairness Trust, added: “Making decisions about your pension is tricky to navigate, and for those on lower incomes, advice is too expensive.

“The Government needs to improve access to advice on pensions planning for those on lower incomes to avoid a living standards catastrophe.”