Unpaid carers are still receiving debt notices from the Department for Work and Pensions despite an ongoing review of Carer’s Allowance overpayments – to assess how these have been accrued on such a vast scale.
Thousands of people caring for an ill, elderly or disabled relative or friend have been asked to repay an overpayment debt since the independent review, being 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, with a staggering 143,922 people now affected. The number of carers who received new debt letters during this period is likely to be higher still – with some people appealing amounts and some opting to settle debts.
With the total number of carers living with an overpayment debt continuing to rise, charity Carers UK and 107 other organisations have written to the Secretary of State for Work and Pensions, Liz Kendall, asking for the creation of new overpayment debts to be halted until the independent review has concluded and its recommendations are implemented.
Carer’s Allowance is available if you spend at least 35 hours a week caring, is currently paid at a rate of £81.90 per week. The earnings limit for Carer’s Allowance is currently £151 per week and carers who go over this limit, even by just a few pence, need to pay back 100% of their Carer’s Allowance for that week.
Unpaid carers juggling part-time work and care are often not aware they have breached the earnings limit. Carers UK has found that in many cases, the DWP has not taken swift action – causing overpayments to build up into large sums. This has a devastating effect, with debts impacting entire households, including children and disabled family members.
In its letter, Carers UK has asked the Government to commit to publishing its report into Carer’s Allowance overpayments in early summer, to implement the recommendations quickly and to write off existing substantial overpayments debts where carers could have been notified sooner by DWP.
Helen Walker, Chief Executive of Carers UK, said:
“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.”
