Carer’s Allowance: Overpayments

Baroness Pitkeathley Excerpts

Tuesday 2nd December 2025 Lords Chamber

Asked by

[Baroness Pitkeathley]

To ask His Majesty’s Government what the timeframe is for reassessing overpayments of Carer’s Allowance in line with the recommendations of the Independent Review of Carer’s Allowance Overpayments.

[Baroness Pitkeathley (Lab)]

My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I acknowledge the Government’s positive response to the recommendations in the independent review.

[The Minister of State at the Department for Work and Pensions (Baroness Sherlock) (Lab)]

My Lords, the Government accept that between 2015 and summer 2025, the guidance on whether and how to average earnings in carer’s allowance did not accurately reflect the statutory position. We will therefore be reassessing earnings-related overpayment cases that occurred between 2015 and September 2025. Where it is found that overpayments were lower than originally calculated, carers will have their debts reduced or cancelled entirely, with the Government refunding any money already paid. We will set out plans for doing this in early 2026.

[Baroness Pitkeathley (Lab)]

I thank my noble friend for that response and for her patience at my persistence. After the problems for carers were ignored for so long by the previous Administration, and after systems did not respond to the clear evidence about the distress caused, carers naturally have a high level of mistrust about how their benefits are administered. Does my noble friend agree that rebuilding that trust must be a priority and that any changes must be completely transparent, with carers consulted and informed at every step of the way?

[Baroness Sherlock (Lab)]

I thank my noble friend for that question and for her work. I pay tribute to the millions of unpaid carers across this country; the Government greatly value them and the work they do. Carers are also fortunate to have some excellent advocates, including many Members of this House—and I think we would probably all acknowledge that supreme among them is my noble friend, whose work in this area has for so very long been recognised by us all.

Carer’s allowance provides support to around 1 million people and, for most of those who receive it, the experience is positive and the rules are clear. But my noble friend is right that, when we came into government, it became clear that there were far too many cases where working carers had been left with large overpayments to be repaid. That is why we commissioned an independent review of earnings-related overpayments. We are very grateful to Liz Sayce for her recommendations, but also to her advisory panel and especially to the unpaid carers who shared their experiences to make that right. We have accepted or partially accepted 38 of the 40 recommendations in the report, we have begun working on many of them already, and we will set out the details in the new year. We will be very clear and transparent: many of the recommendations regard reviewing how we write to people, how we make things clear and how transparent we are. Above all, when the Government make mistakes, they should acknowledge them and put them right, and that is what we are doing.