DWP Demands £33 Million in Carer's Allowance Repayments

The Department for Work and Pensions demanded £33 million in repayments from 32,559 unpaid carers last year following earnings-related overpayments in the Carer's Allowance system. Although the department reports a 30% reduction in the number and value of overpayments for 2025-26, Freedom of Information data reveals a growing number of high-debt cases. Specifically, the number of carers owing more than £20,000 increased from 46 to 78.

Campaign groups and lawmakers argue the system remains opaque and punitive. Concerns have been raised that 1,166 carers with debts exceeding £5,000 may be exposed to fraud investigations. Critics suggest that high levels of debt are being allowed to accumulate despite government promises to investigate all verification and eligibility processes.

The government defended its management of the system, noting that it has increased the earnings threshold and adopted recommendations from the Sayce review. The department stated it is using electronic alerts to identify and stop overpayments more quickly to support unpaid carers.