Last year, over 33,000 carers were notified by the Department for Work and Pensions (DWP) to repay overpayments, some exceeding £20,000, highlighting ongoing issues with the Carer’s Allowance system. This startling figure comes despite the DWP’s introduction of measures aimed at addressing the problem, which surfaced again in the 2025-26 financial year with 32,559 recorded overpayments.
Anna Dixon, Labour MP and chair of the all-party parliamentary group on carers, condemned the situation as “shocking,” emphasizing the burden placed on unpaid carers who are left grappling with significant debts due to systemic failures. She called on the DWP to investigate the persistence of high overpayment numbers and to be transparent with both carers and Parliament about the severity of the issue and plans for resolution.
The number of carers with outstanding debts exceeding £20,000 has nearly doubled, rising from 46 cases to 78 within a year. In response, the government announced intentions to reassess cases dating back to 2015. This review will consider recalculations, potentially reducing debts or issuing repayments where earnings assessments were inaccurately averaged, including situations where debts have already been fully repaid.
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Emily Holzhausen, policy director at Carers UK, criticized the high recoverable amounts still facing some individuals despite previous commitments by the DWP to investigate all Voluntary Earnings Periods (VEPs). “It is unacceptable this level of debt is being allowed to mount up,” she stressed.
Similarly, Dominic King-Carter, policy director at Carers Trust, described the latest data as a source of continued uncertainty for carers fearing entanglement in an imperfect system. He acknowledged that the scale of the challenge is now clearer and more daunting than previously understood.
A DWP spokesperson reaffirmed the department’s commitment to supporting unpaid carers, outlining steps already taken to repair the Carer’s Allowance system, including quicker identification and cessation of overpayments via VEPs, raising the earnings threshold, uprating benefits, and implementing most recommendations from the Sayce review.
Carers affected by overpayments between 10 April 2015 and 2 September 2025 are advised not to contact the Carer’s Allowance Unit proactively. The DWP will reach out with reassessment outcomes or requests for additional information. Some may receive refunds or experience reductions or cancellations of their outstanding debts as a result of the ongoing reviews.