Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential impact of Carer’s Allowance overpayments on individuals in receipt of the benefit; and what steps her Department is taking to support carers in receipt of overpayments.

This Government recognises and values the vital contribution made by unpaid carers every day in providing significant care and continuity of support to family and friends with disabilities.

When we came into government, it became clear that there were far too many cases where hard-working carers had been left with large overpayments to be repaid, sometimes worth thousands of pounds. As a result, we commissioned an independent review of earnings-related overpayments of Carer’s Allowance to understand exactly what has gone wrong and make the necessary improvements needed. We expect to receive the report from the Independent Review shortly. We will then publish the report, and our initial response, as soon as is practicable thereafter. The review is not a substitute for legal proceedings, and the existence of the review does not prejudice any business-as-usual activity by DWP.

The government has not been treading water while waiting for the review. We have already taken steps to address the problem carers have been experiencing. For example, we have introduced the largest increase in the earnings limit since Carer’s Allowance was introduced in 1976. The earnings limit is now 16 hours work at National Living Wage levels and over 60,000 additional people will be able to receive Carer’s Allowance between 2025/26 and 2029/30.

We carefully balance our duty to the taxpayer to recover overpayments with safeguards in place to manage repayments fairly. Carers have a responsibility to ensure they are entitled to benefits and to inform the DWP of any changes in their circumstances that could impact their award. Support remains in place with DWP’s Debt Management Service who are available to speak to anyone who has had an overpayment about the terms of their repayment.

To help prevent overpayments building up in the first place, we want to make it as easy as possible for carers to tell us when something has changed in their life which could affect their Carer's Allowance. That is why we will continue to review and improve communications, including some trials during 2025, so customers are more aware of what changes they need to report and are regularly reminded to do so and in a way that suits them.