Carers UK today (Monday 13 April) welcomes the Government’s announcement of a reassessment exercise for Carer’s Allowance overpayments, which will review over 200,000 cases. The exercise is expected to result in adjustments to overpayments for approximately 25,000 carers, with some carers receiving full or partial refunds.
The reassessment follows recommendations from the Independent Review of Carer’s Allowance, led by Liz Sayce OBE and published in November 2025. The Review identified that widespread systemic issues, rather than individual error, had caused overpayments, particularly in relation to how carers’ earnings were assessed. It found that operational guidance used by the Department for Work and Pensions (DWP) between April 2015 and September 2025 did not accurately reflect the statutory position on averaging earnings, leading to many carers being overpaid through no fault of their own.
Helen Walker, Chief Executive of Carers UK, said:
“We are pleased to see this government taking decisive action to start putting right the failings of the past and provide carers with the redress they deserve. The reassessment process marks an important step in tackling these systemic failures.
“Carers UK has been campaigning on the issue of Carer’s Allowance overpayments for more than seven years, and during that time we have heard from hundreds of carers who have experienced severe financial strain and emotional distress as a result.
“The success of this exercise will ultimately be measured by the experiences of carers themselves. We expect them to be treated with fairness and sensitivity, with a process that is receptive and responsive to carers’ feedback throughout and provides much-needed clarity. Carers UK will provide advice and support to carers and organisations throughout the process, and we have created a dedicated support hub on our website.
“As we mark the 50th anniversary of Carer’s Allowance this week, it is encouraging to hear that the government is also exploring further options for reform including ascertaining whether earnings calculations can be automated and whether the current cliff-edge earnings rule can be replaced with a tapered system. A wider review of Carer’s Allowance is sorely needed to ensure that it properly supports and recognises the contribution of unpaid carers, while protecting them from financial hardship.
“The Independent Review made it clear that failings with Carer’s Allowance go beyond those cases affected by averaging earnings. Carers UK continues to urge the government to adopt the review’s wider recommendations in full, including those relating to cases impacted by unclear guidance on allowable expenses.”