Unpaid carers are still receiving debt notices from the Department for Work and Pensions (DWP) despite an ongoing review of Carer’s Allowance overpayments.
Thousands of carers, who support ill, elderly, or disabled relatives or friends, have been asked to repay overpayment debts since the independent review led by Liz Sayce OBE was announced by the Government in October 2024.
Between May 2024 and February 2025, the number of outstanding Carer’s Allowance overpayment debts increased by over 9,000, affecting a staggering 143,922 people. The number of carers receiving new debt letters during this period is likely higher, with some appealing amounts and others opting to settle debts.
Helen Walker, Chief Executive of Carers UK, commented:
“Thousands of carers are still being impacted by this scandal. Whilst we appreciate the progress the review team has made, we’re concerned that overpayments debts are continuing to rise, bringing life-changing consequences for carers and their families. We need to act now to protect carers – halting the creation of new overpayments debts until the review has concluded and we have a better system in place.
“Currently carers can lose a year’s Carer’s Allowance (£4,258.80) for exceeding the earnings threshold by as little as £52 annually (£1 a week). Carers make an invaluable contribution, and the Government could be doing more to reduce the hardship they are facing because of a fundamentally unfair system.
“Many carers will be paying back debts for years. Some have left employment since due to the stress and fear of having another overpayment. With 1.2 million unpaid carers living in poverty in the UK, we need a system which reflects their worth better supporting them to balance paid work and unpaid care.”
With the total number of carers living with overpayment debts continuing to rise, Carers UK and 107 other organisations have written to the Secretary of State for Work and Pensions, Liz Kendall, urging the Government to halt the creation of new overpayment debts until the review concludes and its recommendations are implemented.
Carer’s Allowance, available to those who spend at least 35 hours a week caring, is currently paid at £81.90 per week. The earnings limit for Carer’s Allowance is £151 per week, and carers who exceed this limit, even by a few pence, must repay 100% of their allowance for that week. Many unpaid carers juggling part-time work and care are unaware they have breached the earnings limit, leading to significant overpayment debts.
Carers UK has found that the DWP's delayed action has caused overpayments to accumulate into large sums, impacting entire households, including children and disabled family members. The charity has asked the Government to publish its report into Carer’s Allowance overpayments in early summer, implement the recommendations swiftly, and write off substantial existing debts where carers could have been notified sooner.
Image credit: iStock
