Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the financial impact on unpaid carers of repaying Carer’s Allowance 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.

The Department has published research into people’s experiences of claiming and receiving Carer’s Allowance in May 2024. The issue of overpayments is covered at pages 54-57: experiences-of-claiming-and-receiving-ca-research-report-final.pdf.

Overpayments can arise for a number of reasons. With respect to those linked to the treatment of earnings in Carer’s Allowance, we inherited a system where some busy carers, already struggling under a huge weight of caring responsibilities, found themselves with unexpected debts. We commissioned an Independent Review, led by Liz Sayce OBE, to investigate why overpayments occurred, how people affected can be better supported, and what changes are needed to prevent similar issues in future. We have published the findings of the Review, acknowledged the shortcomings identified, apologised to those affected, and accepted in full or in part 38 of the Review’s 40 recommendations.

As part of its response, the Government committed to reassessing Carer’s Allowance cases which may have been affected by faulty guidance on averaging of irregularly fluctuating earnings. This guidance was in place between April 2015 and September 2025 and did not accurately reflect the statutory position. The reassessment exercise began on 13 April 2026. Funding of £75m has been provided for the exercise in the financial years 2026/27 to 2028/29. The department expects to review over 200,000 cases, potentially reducing, cancelling, or refunding debts for around 25,000 carers.