The Department for Work and Pensions (DWP) has requested that more than 100,000 individuals repay Carer’s Allowance due to exceeding earnings thresholds. The government is also introducing measures to curb overpayments, including a planned increase in the income limit from April 2025 to help reduce future breaches.
A total of 144,000 people are being asked to return funds, with 99,349 cases linked to carers earning above the permitted level, according to Parliamentary Under-Secretary Andrew Western. To address the issue, the DWP is exploring new communication methods, including text message alerts, to better inform claimants of their obligations.
Carers Face Repayment Demands Over Benefit Breaches
Thousands of carers are being asked to repay Carer’s Allowance after unknowingly or inadvertently exceeding the strict earnings threshold, which currently stands at £151 per week. According to DWP figures, most overpayments occurred due to claimants surpassing this limit, while others involve cases of fraudulent claims or eligibility errors.
In a written parliamentary statement, Andrew Western emphasised that while the government recognises the importance of unpaid carers, recipients must ensure they meet eligibility criteria and report any relevant changes.
He stated:“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.”
To prevent future issues, the government will raise the earnings limit to £196 per week from April 2025, a measure expected to benefit over 60,000 carers. Additionally, the DWP is reviewing how Carer’s Allowance overpayments arise and is seeking ways to mitigate financial hardship for those affected.
Independent Review Set to Examine Overpayment Issues
In response to widespread concerns, the government has commissioned an independent review into how overpayments occur and how affected claimants can be supported. According to Western, this investigation aims to improve safeguards, reduce financial stress, and provide clearer guidance on earnings thresholds.
The review, led by Liz Sayce OBE, is expected to deliver its findings in summer 2025. It will analyse how overpayments occur, assess claimant awareness, and propose solutions to minimise future errors. The DWP has also started testing new notification methods, such as text message alerts, to keep claimants informed of their responsibilities.
Despite these changes, anyone with an outstanding repayment remains liable to return the funds, regardless of whether they are still receiving the allowance. However, repayment plans can be arranged, with Western stating that the DWP is committed to working with claimants to ensure sustainable payment terms.
Carer’s Allowance currently provides £81.90 per week, set to increase to £83.30 from April 2024. Claimants receiving Universal Credit may see deductions, but they can request a Carer’s Element to offset the impact. Applications remain open via the GOV.UK website.
