Carer’s Allowance and overpayments
Understanding how much confusion and anxiety the subject of overpayments can cause, we have answers to some common questions and concerns below.
What is an overpayment?
An overpayment is when you receive more money for a month than the amount you should have been paid, usually for a certain benefit like Carer’s Allowance.
When claiming a benefit like Carer’s Allowance, it’s important to remember you have a responsibility to keep the Carer’s Allowance Unit (Disability and Carers Service in Northern Ireland) informed of changes to your circumstances as these could affect your entitlement.
If you are overpaid a benefit like Carer’s Allowance when you are no longer eligible, you will lose the entire amount and have to pay it back.
The Department of Work and Pensions would need to recover the overpayment if they find this to be the case and you would be contacted and asked to pay the amount back. Over time, the amount could add up quite significantly.
This might be a new job, new earnings or a new pattern of work. It might also include breaks in caring. The earnings threshold is set at £204 (2026/27) per week after deductions.
If the carer is even £1 over this limit, they lose 100% of their Carer’s Allowance which is currently £86.45 per week in England, Wales and Northern Ireland (2026/27).
In Scotland, Carer Support Payment has replaced Carer's Allowance, but the overpayment rules are the same currently.
Naturally, it could come as a shock to receive a notification that you have been overpaid and are being asked to pay money back. Many others will have been in a similar situation, and while it may feel daunting, it’s important not to panic or put off the issue.
The government has now improved the letters that they send to carers. These include information about how much the overpayment might be, to what time periods it relates and how it was worked out.
Don't hesitate to seek professional guidance if needed and see our ‘Support with overpayments’ page for further details. Be careful of unregulated companies posing as debt agencies or financial advisers online offering personalised advice and support. Many are unauthorised and unregulated. Charities like StepChange, Advicelocal and our email advisers at Carers UK offer free, confidential guidance if needed.
When you are contacted, you should be asked to repay the amount in a reasonable way that does not mean that you or your family suffers undue hardship. Contact ‘Debt Management’ at the DWP to negotiate an affordable rate of repayment or seek advice from a local advice agency.
If you are worried about your financial situation and would like further specialist advice, contact Get Debt Help. Our Free Debt Advice. StepChange.
Note that from spring 2026, the Department for Work and Pensions will be reviewing some earnings-related overpayments already issued so you may be contacted regarding a potential partial or complete refund if affected. Read more about the review.
There is always free advice and support available – you can find helpful sources of support to turn to here.
You could also take a look at our ‘Support with overpayments’ page for further guidance.
When you are contacted, you should be asked to repay the amount in a reasonable way that does not put you under any undue stress.
If you are worried about your financial situation and would like further specialist advice, contact the National Debtline: www.nationaldebtline.org
You may find this document useful for dealing with debt.
There is always free advice and support available – you can find helpful sources of support to turn to here.
We understand that the issue of having an overpayment can feel stressful. You can find out how to deal with this and find further support on our page, 'Support with overpayments - Carer's Allowance'.
You can also find more information about the government’s recent review in relation to overpayments on this page.