The Department for Work and Pensions (DWP) has launched a significant review of its Carer's Allowance system, following a controversy surrounding overpayments that have left thousands of unpaid carers facing unexpected debts.
Confusing Rules Lead to Widespread Overpayments
The independent Sayce Review, which began in October 2024, uncovered systemic issues with how carers report their earnings. The investigation found that many claimants did not fully understand what changes to their income they needed to declare to the DWP.
This confusion has led to a substantial number of overpayments. Official data reveals that between 2015 and September 2025, there were 210,000 earnings-related Carer's Allowance overpayments.
In response to the review's findings, the government has announced it will reassess the cases of approximately 185,000 unpaid carers who have been affected by these overpayment demands.
Government Pledges Action and Accountability
Work and Pensions Secretary Pat McFadden addressed the findings, acknowledging the failure of the current system. He stated that carers are vital to communities and the government has a duty to rectify the situation.
"The Sayce Review has shown us clearly that the guidance on earnings averaging was confusing," McFadden said. "We inherited this mess from the previous government, but we've listened to carers, commissioned an independent review, and are now making good for those affected."
He emphasised that rebuilding trust requires concrete action, not just words, and ensuring support works for those who need it most.
Understanding Carer's Allowance
Carer's Allowance is a weekly payment of £83.30 designed to support individuals who provide regular care. To qualify, a person must care for someone for at least 35 hours per week.
Key eligibility points include:
- You do not need to be related to or live with the person you care for.
- Only one person can claim the allowance for a single individual, even if multiple people help.
- Payment can be made weekly or every four weeks.
- Claimants may be eligible for additional benefits if they are not employed.
The type of care provided can vary widely and includes practical help such as:
- Assisting with household chores like shopping, cooking, and washing.
- Accompanying the cared-for person to medical appointments.
- Providing general supervision and support.
The ongoing review aims to create a fairer and more transparent system, preventing carers from being unfairly penalised for administrative complexities they did not create.
