First details published for carer’s allowance review

The first details of an independent review into carer’s allowance overpayments have been published by the government (Monday 9 December).

Why is this review necessary?

Carer’s Allowance is currently £81.90 a week and helps nearly a million unpaid carers in the UK.

The review, started by work and pensions secretary Liz Kendall and led by Liz Sayce OBE, addresses concern about big overpayments for many carers.

The harsh “cliff-edge” penalties mean that earning even a penny over the current weekly limit of £151 can result in hefty repayment requests for the full amount.

For example, earning just £1 more could lead to a repayment of more than £4,200.

The earnings threshold will go up to £181 next year, helping more than 60,000 carers keep their allowance.

What the review will cover

The review will focus on three key areas:

• how and why overpayments happened
• suggest ways to prevent them in the future
• work out how the Department for Work and Pensions (DWP) can improve support for those affected

The review will look at England and Wales, focusing on how carer’s allowance overpayments relate to earnings.

We don’t know if families still owing money will need to keep repaying during the review.

The Lib Dems have suggested the government cancel most of these debts, but we’re unsure whether f Labour will agree to this.

The findings are expected by summer 2025, but we don’t have a specific date for when it will be submitted to the secretary of state yet.

Input and participation

The review will let people and stakeholders share their experiences and evidence.

Roundtable events will give a space to talk about new findings.

Working together like this is key to really understanding the issues.

Sir Stephen Timms MP, minister for social security and disability, says carers should be encouraged, not punished, when it comes to financial independence.

Speaking to the Guardian, Timms said ministers want to see “a new settlement” which supports carers.

“We need to get to the bottom of what has been going on,” he adds.

Concerns

Many carers have been accused of fraud without knowing they broke any rules.

This raises concerns about DWP's responsibility in these situations.

Campaigners want to stop overpayments while the review is happening, but it’s unclear if that will happen.

Have you been affected by a benefits overpayment?

If you’ve been told to pay money back from an overpayment but can’t afford to, you’re not alone.

Around 30% of the people we support have turned to us because they’re struggling to repay overpaid benefits.

We might be able to help you with free and impartial debt advice online or you can give us a call.