What about people who don't work?
The idea is going something different to the every day normality.
So it's going what you'd do when away from home for a HOLIDAY, but using your own home as the base, in the way you would use a hotel, B&B, tent, caravan, holiday let.
On a U.K. holiday people rarely just stay in the one place doing all the normal day to day stuff - washing, cleaning, cooking, chores, big shop, etc. They're more likely having fun together as a family, going out to see the sights and attractions, spending time on a beach or lovely park area, playing games, going on a bus/boat trip, etc. So a staycation is doing those kind of 'holiday' activities but using your own home as your holiday base.