Asked by: Sarah Gibson (Liberal Democrat - Chippenham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what proportion of Carer’s Allowance overpayment cases identified by her Department in each of the last six years were subject to investigation prior to the commencement of debt recovery procedures.
Answered by Andrew Western - Parliamentary Under-Secretary (Department for Work and Pensions)
The Department looks into every case where an overpayment is calculated before the overpayment is finalised and debt recovery commences.
Where overpayments do occur, the Department has a duty to the taxpayer to protect public funds and to ask for money to be paid back. We remain committed to working with anyone who is struggling with their repayment terms and will always look to negotiate sustainable and affordable repayment plans
Asked by: Sarah Gibson (Liberal Democrat - Chippenham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether her Department plans to review the structure of the earnings limit for Carer’s Allowance to reduce the risk of significant overpayments resulting from minor threshold breaches.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
The weekly earnings limit in Carer’s Allowance (CA) was increased to £196 net earnings in April 2025. This is the largest cash increase ever since CA was introduced in 1976 and the highest percentage increase since 2001. Over 60,000 additional people will be able to receive CA between 2025/26 and 2029/30 as a result. Going forward the earnings limit will be pegged to 16 hours work at National Living Wage (NLW) levels, and in future it will increase when the NLW increases. This will provide more certainty on the hours they can work for those unpaid carers with a job on the NLW.
As my Rt hon friend the member for Leeds West (the Chancellor of the Exchequer) said at the Autumn Budget, we also need to look at the current “cliff edge” earnings rules. A taper, for example, could further incentivise unpaid carers to do some work. It could also reduce the risk of significant overpayments. However, introducing a taper in CA is not without challenges and could significantly complicate the benefit as it currently stands and would mean a major rebuild of the CA computer system. DWP is undertaking some scoping work to see whether an earnings taper in CA might be a feasible option in the longer term. But any taper will be several years away.
Asked by: Ann Davies (Plaid Cymru - Caerfyrddin)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what recent assessment she has made of the potential merits of pausing the creation of new Carer’s Allowance overpayment debts until the conclusion of the independent review.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
Overpayments have caused significant anxiety for some people. It is important to take the time to review what happened independently, to establish what exactly what went wrong and assess how to put things right. We will await the findings of the independent review being conducted by Liz Sayce. The review is not a substitute for legal proceedings and the existence of the review does not prejudice any business-as-usual activity by DWP.
We carefully balance our duty to the taxpayer to recover overpayments with safeguards in place to manage repayments fairly. Carers have a responsibility to ensure they are entitled to benefits and to inform the DWP of any changes in their circumstances that could impact their award. Support remains in place with DWP’s Debt Management Service available to speak to anyone who has had an overpayment about the terms of their repayment.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether she has made an assessment of the potential impact of the proposed changes to the Personal Independence Payment qualifying criteria and the consequential effect on Carer's Allowance eligibility on the ability of carers to participate in paid employment.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
We have committed to introduce a new requirement that, in addition to the existing eligibility criteria, claimants must score a minimum of four points in at least one daily living activity to be eligible for the daily living component of Personal Independence Payment. Our intention is that – subject to parliamentary approval – the changes will apply to new claims and award reviews from November 2026.
We understand the struggles facing many carers. We have launched an Independent Review of Carer’s Allowance which is exploring how earnings-related overpayments have occurred and what changes can be made. We’ve already taken action by boosting the Carer’s Allowance earnings threshold by £45 a week to £196 – a move that will benefit more than 60,000 carers by 2029/30.
As the Green Paper sets out, we will consider the impacts on benefits for unpaid carers as part of our wider considerations of responses to the consultation as we develop our detailed proposals for change. We are also consulting on how best to support those who lose entitlement to Personal Independence Payment due to the reforms, including how to make sure health and eligible care needs are met.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many carers have received an earnings-related Carer’s Allowance overpayment since (a) 16 October and (b) 9 December 2024.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
We do not have the in-year estimates for the time frame suggested however last year’s statistics are a guide to the overall overpayment levels.
Levels of Carer’s Allowance overpayments for the year 23/24 can be found here:
Fraud and error in the benefit system, Financial Year Ending (FYE) 2024 - GOV.UK
For ease, here are the latest statistics:
| Total Rate (%) | Total Value (£m) | Fraud Rate (%) | Fraud Value (£m) | Claimant Error Rate (%) | Claimant Error Value (£m) | Official Error Rate (%) | Official Error Value (£m) |
|---|---|---|---|---|---|---|---|---|
3,700 | 5.2 | 190 | 3.0 | 110 | 2.0 | 80 | 0.1 | 10 |
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many carers have received a Carer’s Allowance overpayment since (a) 16 October and (b) 9 December 2024.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
We do not have the in-year estimates for the time frame suggested however last year’s statistics are a guide to the overall overpayment levels.
Levels of Carer’s Allowance overpayments for the year 23/24 can be found here:
Fraud and error in the benefit system, Financial Year Ending (FYE) 2024 - GOV.UK
For ease, here are the latest statistics:
| Total Rate (%) | Total Value (£m) | Fraud Rate (%) | Fraud Value (£m) | Claimant Error Rate (%) | Claimant Error Value (£m) | Official Error Rate (%) | Official Error Value (£m) |
|---|---|---|---|---|---|---|---|---|
3,700 | 5.2 | 190 | 3.0 | 110 | 2.0 | 80 | 0.1 | 10 |
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many carers have a Carer’s Allowance overpayment debt as a result of breaching the earnings limit in (a) England, (b) Wales, (c) Scotland and (d) Northern Ireland.
Answered by Andrew Western - Parliamentary Under-Secretary (Department for Work and Pensions)
This Government recognises and values the vital contribution made by carers in supporting some of the most vulnerable in society, including pensioners and disabled people. We are determined to provide unpaid carers with the support they need and deserve. From April 2025, the Government is boosting the Carer’s Allowance earnings threshold by £45 a week to £196, benefitting more than 60,000 carers by 2029/30. This is the biggest ever cash increase in the earnings threshold for Carer’s Allowance.
Claimants have a responsibility to ensure they are entitled to benefits they claim and to inform the DWP of any changes in their circumstances that could impact their award.
We understand that providing care can be a demanding role, which is why we are trialling new ways of communicating with customers to support them in fully understanding their responsibilities to report changes in their circumstances, such as employment, including through a trial of text message reminders.
An independent review into the issue of overpayments of Carer’s Allowance in cases where earnings have exceeded the entitlement threshold has begun. The review will investigate how overpayments of Carer’s Allowance related to earnings have occurred, how we can best support those who have accrued them, and how to reduce the risk of these problems occurring in future. Timelines and terms of reference were published on Gov.uk on 9 December for reference. We expect review findings and recommendations to be submitted to the Department in early summer 2025. Liz Sayce OBE, the Independent Reviewer, is keen to hear from interested parties.
Where overpayments do occur, the Department has a duty to the taxpayer to protect public funds and to ask for money to be paid back. We remain committed to working with anyone who is struggling with their repayment terms and will always look to negotiate sustainable and affordable repayment plans.
Information on the volume of customers with an outstanding Carers Allowance debt and the volume of customers with a Carer’s Allowance overpayment debt as a result of breaching the earnings limit is provided below. This will include people who are no longer receiving Carers Allowance, people who are no longer carers and people who made fraudulent claims and were never entitled to carers allowance.
| Volume of customers with an outstanding CA debt | Volume of Customers with an Outstanding CA Debt with the E-Referral Overpayment Reason of - 'Earnings over CA Limit' |
English postcode | 116,874 | 81,503 |
Welsh postcode | 7,657 | 5,359 |
Scottish postcode | 13,922 | 9,112 |
Northern-Irish postcode | 5,469 | 3,375 |
The data has been sourced from internal DWP management information, which is intended only to help the Department to manage its business. It is not intended for publication and has not been subject to the same quality assurance checks applied to our published official statistics.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many carers have Carer’s Allowance overpayment debt in (a) England, (b) Wales, (c) Scotland and (d) Northern Ireland.
Answered by Andrew Western - Parliamentary Under-Secretary (Department for Work and Pensions)
This Government recognises and values the vital contribution made by carers in supporting some of the most vulnerable in society, including pensioners and disabled people. We are determined to provide unpaid carers with the support they need and deserve. From April 2025, the Government is boosting the Carer’s Allowance earnings threshold by £45 a week to £196, benefitting more than 60,000 carers by 2029/30. This is the biggest ever cash increase in the earnings threshold for Carer’s Allowance.
Claimants have a responsibility to ensure they are entitled to benefits they claim and to inform the DWP of any changes in their circumstances that could impact their award.
We understand that providing care can be a demanding role, which is why we are trialling new ways of communicating with customers to support them in fully understanding their responsibilities to report changes in their circumstances, such as employment, including through a trial of text message reminders.
An independent review into the issue of overpayments of Carer’s Allowance in cases where earnings have exceeded the entitlement threshold has begun. The review will investigate how overpayments of Carer’s Allowance related to earnings have occurred, how we can best support those who have accrued them, and how to reduce the risk of these problems occurring in future. Timelines and terms of reference were published on Gov.uk on 9 December for reference. We expect review findings and recommendations to be submitted to the Department in early summer 2025. Liz Sayce OBE, the Independent Reviewer, is keen to hear from interested parties.
Where overpayments do occur, the Department has a duty to the taxpayer to protect public funds and to ask for money to be paid back. We remain committed to working with anyone who is struggling with their repayment terms and will always look to negotiate sustainable and affordable repayment plans.
Information on the volume of customers with an outstanding Carers Allowance debt and the volume of customers with a Carer’s Allowance overpayment debt as a result of breaching the earnings limit is provided below. This will include people who are no longer receiving Carers Allowance, people who are no longer carers and people who made fraudulent claims and were never entitled to carers allowance.
| Volume of customers with an outstanding CA debt | Volume of Customers with an Outstanding CA Debt with the E-Referral Overpayment Reason of - 'Earnings over CA Limit' |
English postcode | 116,874 | 81,503 |
Welsh postcode | 7,657 | 5,359 |
Scottish postcode | 13,922 | 9,112 |
Northern-Irish postcode | 5,469 | 3,375 |
The data has been sourced from internal DWP management information, which is intended only to help the Department to manage its business. It is not intended for publication and has not been subject to the same quality assurance checks applied to our published official statistics.
Asked by: Neil Duncan-Jordan (Labour - Poole)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will review the eligibility rules for carer's benefits to enable more carers to combine paid work and unpaid care.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
Unpaid carers play a vital role in supporting the elderly, disabled relatives or friends. Sometimes unpaid carers will need to turn to the benefit system for financial support, so it is right that we keep Carer’s Allowance under review, to see if it is meeting its objectives, and giving unpaid carers the help and support they need and deserve.
The Government has announced that from April 2025 the weekly Carer’s Allowance earnings limit will be pegged to the level of 16 hours work at the National Living Wage (NLW) and in future it will increase when the NLW increases. This means that unpaid carers will be able to earn up to £196 per week net earnings and still receive Carer’s Allowance compared to £151 now. This means that an additional 60,000 unpaid carers will gain eligibility for the benefit between 2025/26 and 2029/30.
This important change reduces a work disincentive inherent in the current Carer’s Allowance earnings system, but, as the Chancellor said at the Budget, we also need to look at the current “cliff edge” earnings rules. A taper, for example, could further incentivise unpaid carers to do some work. It could also reduce the risk of significant overpayments. However, introducing a taper in Carer’s Allowance is not without challenges and could significantly complicate the benefit as it currently stands and would mean a significant rebuild of the Carer’s Allowance computer system. DWP has begun some scoping work to see whether an earnings taper in Carer’s Allowance might be a feasible option in the longer term.
Many carers who are receiving Carer’s Allowance and doing some work will also be receiving Universal Credit. For those receiving Universal Credit, the 55% taper rate and any applicable work allowance will help to ensure that people are better off in work.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether her Department plans to reduce the (a) number and (b) size of Carer's Allowance overpayments.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
We recognise the challenges carers are facing and we are determined to provide unpaid carers with the support they need and deserve.
With respect to overpayments of Carer’s Allowance, we are moving quickly to understand exactly what has gone wrong so we can set out our plan to put things right.
Claimants have a responsibility to report change of circumstances as they happen. Customers taking action as soon as possible, to let the department know of a change will reduce the number and size of overpayments.