Thousands of carers receiving debt letters as review of Carer’s Allowance overpayments continues

Unpaid carers are still receiving debt notices from the Department for Work and Pensions despite an ongoing review of Carer’s Allowance overpayments – to assess how these have been accrued on such a vast scale. 

Thousands of people caring for an ill, elderly or disabled relative or friend have been asked to repay an overpayment debt since the independent review, being led by Liz Sayce OBE, was announced by the Government in October 2024. 

Between May 2024 and February 2025, the number of outstanding Carer’s Allowance overpayment debts increased by over 9,000, with 143,922 people now affected.

The number of carers who received new debt letters during this period is likely to be higher still – with some people appealing amounts and some opting to settle debts. 

With the total number of carers living with an overpayment debt continuing to rise, charity Carers UK and 107 other organisations have written to the Secretary of State for Work and Pensions, Liz Kendall, asking for the creation of new overpayment debts to be halted until the independent review has concluded and its recommendations are implemented.  

Carer’s Allowance is available if you spend at least 35 hours a week caring, is currently paid at a rate of £81.90 per week.

The earnings limit for Carer’s Allowance is currently £151 per week and carers who go over this limit need to pay back 100% of their Carer’s Allowance for that week.  

Unpaid carers juggling part-time work and care are often not aware they have breached the earnings limit.