Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, with reference the Answer of 19 February 2025 to Question 30627, if he will provide updated figures on the number of carers with Carer's Allowance overpayment debts as a result of breaching the earnings limit in (a) England, (b) Wales, (c) Scotland and (d) Northern Ireland.
Overpayments can arise for a number of reasons. With respect to those linked to the treatment of earnings in Carer’s Allowance, we inherited a system where some busy carers, already struggling under a huge weight of caring responsibilities, found themselves with unexpected debts. We commissioned an Independent Review, led by Liz Sayce OBE, to investigate why overpayments occurred, how people affected can be better supported, and what changes are needed to prevent similar issues in future. We have published the findings of the Review, acknowledged the shortcomings identified, and accepted in full or in part 38 of the Review’s 40 recommendations. As part of its response, the Government committed to reassessing Carer’s Allowance cases which may have been affected by faulty guidance on averaging of irregularly fluctuating earnings. This guidance was in place between April 2015 and September 2025 and did not accurately reflect the statutory position.
The reassessment exercise began on 13 April 2026. Funding of £75m has been provided for the exercise in the financial years 2026/27 to 2028/29. The department expects to review over 200,000 cases, potentially reducing, cancelling, or refunding debts for around 25,000 carers.
The number of people with Carer's Allowance overpayment debts as a result of breaching the earnings limit where the person has a postcode in (a) England, (b) Wales, and (c) Scotland is presented below (correct as at 22 April 2026). Social security is a transferred matter in Northern Ireland, which is therefore excluded from these figures.
Carer’s Allowance has been a devolved matter in Scotland since April 2018, therefore cases with a Scottish postcode are not included where the overpayment occurred after that date. However, at the request of the Scottish Government, where such cases may have been affected by the faulty guidance on averaging of earnings identified by the Review, they are included in the current exercise to reassess such cases.
| England | Wales | Scotland |
Volume of Customers with an Outstanding CA Debt with 'Earnings over CA Limit' | 83,489 | 5,272 | 920 |