Carer's Allowance overpayments: what the DWP reassessment means for you
DWP is reassessing Carer's Allowance overpayments caused by unclear guidance on earnings between 2015 and 2025. Around 25,000 carers could have a debt cut, cancelled or refunded.
Paid too much Carer's Allowance in the past? This is for you.
On 13 April 2026 the Department for Work and Pensions (DWP) began reassessing Carer's Allowance overpayments linked to earnings (DWP, 13 April 2026). It expects to review more than 200,000 cases, and says around 25,000 carers could have a debt cut, cancelled or refunded.
Why this is happening
An independent review led by Liz Sayce, published with the government's response on 25 November 2025, looked at how DWP handled earnings that go up and down from week to week (GOV.UK, 25 November 2025). The government accepted, or partly accepted, 38 of its 40 recommendations, and agreed that its guidance on averaging these earnings did not match the law between April 2015 and September 2025.
In a written statement to Parliament on 13 April 2026, the government said "mistakes were made, and we are determined to put them right" (Hansard, 13 April 2026). It set aside £75m for the work over 2026/27 to 2028/29.
Progress so far
DWP's first progress figures, published on 14 October 2026, show it reviewed and cleared 2,400 cases between 13 April and 13 September 2026, with 230,900 still waiting (DWP, 14 October 2026). DWP expects to finish by March 2029. Carers UK says the cases reviewed so far are 1.04% of the total, and that at this pace the exercise would take around 40 years (Carers UK, 14 October 2026).
The earnings limit has gone up too
From April 2026 you can earn up to £204 a week, after tax, National Insurance and some expenses, and still get Carer's Allowance, which is £86.45 a week in 2026/27 (GOV.UK, Carer's Allowance, 2026/27 rates). Going over the limit in a week means no Carer's Allowance for that week, and the government says it is exploring a gradual taper instead (DWP, 13 April 2026). In Scotland, carers claim Carer Support Payment instead.
What this means for you
- If your overpayment came from earnings that went up and down between April 2015 and September 2025, you do not need to contact DWP now. DWP says it holds most of the information it needs and will write to you.
- Keep your paperwork together. Old DWP letters and payslips in one folder make follow-up questions easier to answer.
- If your overpayment arose for another reason, it is not part of this exercise. Free advice is available from Carers UK and Carers Trust (DWP, 13 April 2026), or from Citizens Advice.
- If you work and care for at least 35 hours a week, look at your eligibility again under the higher limit.
- Tell the Carer's Allowance Unit straight away if your earnings change.
Guidance only. DWP makes the decisions on every claim.
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Original source: Unpaid carers impacted by unclear guidance to have debts cancelled, DWP, 13 April 2026