The Department for Work and Pensions (DWP) has launched a major review of Carer's Allowance, placing the financial support of 185,000 unpaid carers under scrutiny. This decisive action follows the discovery of widespread overpayments linked to claimants' earnings.
Scale of the Overpayment Issue
In a significant announcement made on Tuesday, November 25, the DWP revealed that a total of 212,000 earnings-related Carer's Allowance overpayments occurred between 2015 and September 2025 in England and Wales. Of these, 185,000 cases are now set for formal review.
This reassessment means that thousands of individuals who provide essential, unpaid care for loved ones could see their historical overpayments either cancelled or be required to arrange for repayment. The initiative was prompted by an independent review which concluded that unclear official guidance had left many carers facing unexpected and distressing debts.
Official Responses and Relief for Carers
Helen Walker, Chief Executive of the charity Carers UK, welcomed the government's move. "It's a really important day for carers today and in Carers UK's 60 year history," she stated. "We are really pleased that this issue we've raised for nearly 8 years is finally being addressed, with system failures acknowledged."
She further highlighted a key outcome: "We welcome the fact that Government has committed to writing off debt, where overpayments were lower than originally calculated, reducing or cancelling debts entirely, with refunding any money already repaid."
Minister for Social Security and Disability, Sir Stephen Timms, acknowledged the inherited problems with the benefit. "Carers deserve a benefit that reflects their vital contribution to society," he said. "Every day, they provide care and support that enables their loved ones to live with dignity – and we owe them a system that works properly."
Seeking to reassure the public, Sir Stephen added, "I want to reassure carers that this issue doesn't affect many cases. But where it's gone wrong, we'll put it right."
What Happens Next for Affected Carers?
The DWP has confirmed that further details regarding the reassessment process will be published in due course. This review will also include individuals who are no longer providing full-time care, ensuring a comprehensive approach to resolving the historical issue.
This development marks a pivotal moment for the UK's welfare system, aiming to rectify long-standing failures and offer financial clarity to those who perform a critical role in society.
