Thousands of unpaid carers are being pursued by the Department for Work and Pensions (DWP) to repay substantial benefit overpayments, with some debts exceeding £20,000. Recent figures reveal that last year alone, the DWP sought repayment of £33 million following 32,559 earnings-related overpayments linked to Carer’s Allowance.
This data underscores ongoing issues within the Carer’s Allowance system, a benefit designed for those providing at least 35 hours of care per week to individuals with significant care needs. Valued at £86.30 per week, the allowance is among the lowest state benefits and is tied to a strict earnings threshold. Carers earning above this limit risk losing their entire weekly payment, causing overpayments to accumulate rapidly if breaches go unnoticed.
Although the DWP introduced reforms intended to detect problems quicker—resulting in approximately a 30% reduction in both the number and value of overpayments during 2025-26—critics argue that significant problems persist. Disturbingly, the number of cases with debts exceeding £20,000 actually increased from 46 to 78 within a year, with many debts believed to have accumulated over multiple years before detection.
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Moreover, more than half of all overpayments were over £500, indicating many cases went unaddressed for extended periods. Around 1,166 carers now owe more than £5,000, which could potentially expose them to investigations for fraud, despite the department’s independent review concluding that systemic flaws—not deliberate wrongdoing—are to blame.
The Government has pledged to review thousands of historical overpayment cases, raised the earnings threshold, and promised swifter action on electronic earnings alerts. Campaigners, however, continue to call for transparency and accountability.
Anna Dixon, Labour MP and chair of the All-Party Parliamentary Group on Carers, emphasized the need for clarity: “I hope the Department for Work and Pensions will investigate why the numbers remain so high and be transparent with carers and parliament about the scale of this problem and what it intends to do to put it right.”
Emily Holzhausen of Carers UK echoed these concerns, stating: “It is unacceptable this level of debt is being allowed to mount up after promises to investigate all cases. Clear explanations are urgently needed.”
Dominic King-Carter from Carers Trust added: “The data bring continued uncertainty to carers, revealing the challenge is even greater than previously thought.”
With an estimated five million unpaid carers in England and Wales—many relying on Carer’s Allowance—the stakes remain high. The DWP maintains its commitment to support carers by implementing reforms, increasing the earnings threshold, and addressing the issues highlighted in the independent review.