The Department for Work and Pensions (DWP) is investigating 200,000 benefits claims, warning claimants they could be due a refund. The DWP is reviewing hundreds of thousands of unpaid carer cases in a major correction drive.
Carer's Allowance Review
The DWP is reassessing Carer's Allowance claims dating back to 2015. This follows an independent investigation into overpayments, which found the system confusing and unfair to carers. The government has accepted 38 of the 40 recommendations from the independent Sayce Review into Carer's Allowance overpayments, published in November 2025.
Unclear Guidance Led to Debts
From April 2015 to September 2025, guidance on averaging irregularly fluctuating earnings was unclear and did not accurately reflect the law. Carers juggling paid work with at least 35 hours of unpaid care built up debts without realizing they had exceeded the weekly earnings limit. The government says this was a system failure and is taking action to correct it.
Carers 'Living an Agony'
Louise Casey, head of the Labour government's adult social care commission, said millions of unpaid carers are “living an agony” while propping up an outdated, fragmented social care system. Carers frequently have to “fight every step of the way” for state support, spending more time sorting out problems with the health and social care system than with their loved ones. Many feel like “unpaid project managers,” trying to navigate a confusing system.
Casey noted that while being a carer can be uplifting, the reality is often tiring, uncomfortable, repetitive, distressing, and frustrating.
Government Response
Work and Pensions Secretary Pat McFadden stated: “We inherited a system that left unpaid carers building up debt through no fault of their own, something we’re determined to put right. That’s why we accepted the vast majority of the Sayce Review’s recommendations and are now getting to work implementing them, kicking off the reassessment exercise to review cases impacted by unclear guidance. Carers are vital to our communities, and we are committed to taking action to rebuild their trust.”
