Caraher grew up in Crossmaglen and attended Queen's University Belfast, where he became active in the Irish nationalist New Ireland Society, although he saw himself principally as a supporter of the British Labour Party.
He then became a founder member of the National Democratic Party (NDP).
[2] Caraher became a teacher of English and politics, working in a Belfast grammar school.
[2][3] The NDP became part of the new Social Democratic and Labour Party (SDLP), and Caraher immediately became one of its main political theorists.
It was in 1982 that he came closest to winning a seat, taking fourth place, but narrowly missing out on transfers.