MPs have urged the government to provide extra financial help for unpaid carers.
The Commons work and pensions committee said people who care for relatives and friends save the taxpayer an estimated £87bn every year.
In a report published on Friday, the MPs said carers' support was of "critical importance" to the government.
They recommended income replacement for those who have to work part-time or are unable to work because of their commitments, and compensation for costs associated with care work.
The report said carers often struggle to remain in work because of a lack of affordable, reliable and flexible care services, and risk their working skills becoming out of date.
It concluded: "We believe that the current system of benefits for carers is outdated and we recommend the introduction of two distinctive 'tiers' of support for carers, offering income replacement support for carers unable to work, or working only part-time, and compensation for the additional costs of caring for all carers in intensive caring roles."
It went on: "We believe that the Department for Work and Pensions should support adults who become carers during their working lives to combine work and care, and enable those who wish to return to paid work when caring ends or changes to do so."
Stakeholder Response: Help the Hospices
Jonathon Ellis, director of public policy and parliamentary affairs at Help the Hospices told ePolitix.com:
The Commons work and pensions committee's report reflects the views of many carers who find the current benefits system complicated and carers allowance inadequate.
An estimated 500,000 people provide unpaid care for a terminally ill relative or friend in the UK. The current benefits system can make claiming seem difficult and time consuming, at a time when carers are also facing the emotional impact of knowing that they will eventually lose the person that they are caring for.
Carers of the terminally ill are often 'thrown in' to their caring role with little time to plan, or to consider what might be involved. They may not even identify themselves as carers. However, many people now live for long periods with a terminal diagnosis, and carers often have to deal with a complex and sometimes unpredictable illness.
Any reform to existing benefits and employment support services for carers must ensure flexibility and fast-track access for carers of the terminally ill.
Dods Parliamentary Communications Ltd