Overview
- Cases where carers were penalised over fluctuating earnings will be reassessed back to 2015, with debts reduced or cancelled and refunds issued where money has already been recovered.
- Ministers say most reviews will happen automatically, and the government has accepted the vast majority of Liz Sayce’s 40 recommendations.
- Near‑term changes include clearer guidance on earnings averaging, better recording of decisions, faster processing of wage data, and a senior lead to oversee delivery, with the earnings limit raised to £196 in April.
- The review criticised the cliff‑edge rule and the DWP’s failure to warn carers despite real‑time pay data, and tribunals this year found some averaging decisions made since 2020 were unlawful.
- At least 144,000 carers are repaying over £251m, total overpayments since 2019 are estimated at about £357m, and 852 people were referred for prosecution with 1,510 civil fines issued; no broad compensation was recommended.