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Carer's Allowance: Overpayments

Answer

The Government inherited a system where some busy carers, already struggling under a huge weight of caring responsibilities, have found themselves with unexpected debts due to earnings-related overpayments of Carer’s Allowance which they were asked to pay back. This only affected some of the relatively small number of Carer’s Allowance claimants who also do paid work, but the impact on some of these unpaid carers has been significant.

Liz Sayce OBE led an Independent Review into the matter. The Review’s report, which we published on 25 November 2025, alongside the Government’s response, has been invaluable in assessing how these overpayments have arisen; what can be done to support unpaid carers who have incurred debts in the past; and how further overpayments can be minimised in future.

The Review has shown that some mistakes were made, and we are determined to put them right. The Government has welcomed the report and is accepting or partially accepting 38 out of the 40 recommendations. In some cases, the changes the report is asking for have already been made. Others will take more time to put in place.

The department agrees the guidance on averaging earnings between 2015 and summer 2025 did not accurately reflect the statutory position with respect to those with fluctuating earnings. That is why we are putting steps in place to run a reassessment exercise. This exercise will begin later this year, and we will communicate details on how this will work in due course.

The department does not routinely publish data at a benefit level linked to benefit fraud prosecutions. However, data on the volume of prosecutions since 2015, where published, can be found in their respective Annual Report available here: DWP annual reports and accounts - GOV.UK. For example, for the 2024/25 figures see page 114 in the Annual Report and Accounts.

Secondary information

Type

Written question

Reference

103620

Session

2024-26

Grouped for answer

Yes

Subjects

Carers Convictions Overpayments Carer's allowance

Contains statistics

Yes

Link

View this Written question on www.parliament.uk