Carer’s Allowance Overpayment Debt Surges to £250 Million

A government review is underway to address systemic issues that have left unpaid carers facing financial hardship and mounting debts.

The National Audit Office (NAO) reported that Carer’s Allowance overpayment debt has risen by £100 million since 2018, reaching £250 million in 2023/24.
Over 136,000 carers are repaying debts, with many unaware they breached earnings thresholds due to a 'cliff-edge' system that offers no tapering for minor overages.
Charities and MPs have criticized the Department for Work and Pensions (DWP) for failing to prevent overpayments despite technological tools to flag issues early.
The government has launched an independent review to address overpayment risks and support carers with existing debts, with findings expected by summer 2025.
The earnings threshold for Carer’s Allowance will increase from £151 to £196 per week in April 2025, potentially benefiting over 60,000 carers.