Carer’s Allowance overpayments: positive news for carers
In 2024, we wrote a blog about the growing number of people who had been told they’d been overpaid Carer’s Allowance – often without warning – and were then asked to repay large sums of money.
We shared that article because it was a big issue we were seeing first-hand at Citizens Advice Hull and East Riding, with carers contacting us worried, confused and struggling with debt they didn’t believe they should owe.
The good news is that the Government has now accepted most of the recommendations from an independent review – a move that could bring real relief to carers who were wrongly told they owed money.
Why were so many carers overpaid?
If you receive Carer’s Allowance – or have in the past – you may have heard about the Government reviewing past overpayments.
Between 2015 and 2025, many carers built up Carer’s Allowance overpayments without realising. This often happened because:
- Earnings changed from week to week
- The rules about how earnings were worked out weren’t clear
- Carers didn’t realise they had gone slightly over the earnings limit
In some cases, people were later told they owed thousands of pounds, even though they believed they had done everything right.
An independent review – known as the Sayce Review – found that many of these overpayments weren’t carers’ fault, and that poor communication and unclear guidance played a big part.
What’s changing now?
The Government has said it will act on most of the review’s recommendations. This includes:
- Re-checking past Carer’s Allowance overpayments linked to earnings between 2015 and summer 2025
- Reducing, cancelling or refunding debts where people were wrongly treated
- Improving how the Department for Work and Pensions explains earnings rules, so carers understand what they need to report
- Updating internal guidance so fluctuating wages are handled more fairly
Importantly, you shouldn’t need to apply for this reassessment yourself – DWP has said it will review affected cases automatically.
What about the earnings limit?
From April 2025, the Carer’s Allowance earnings limit was increased to reflect 16 hours at the National Living Wage.
This means carers can earn more before losing their entitlement, which better reflects how people actually work – especially those balancing caring responsibilities with part-time or flexible jobs.
What should you do now?
For now:
- You don’t need to contact DWP about reassessments – they’ve said they’ll be in touch with people directly
- Keep hold of any letters or records you have about Carer’s Allowance or past overpayments
- Be cautious about changes to your earnings, especially if your pay varies from week to week
If you’re worried, confused, or already repaying a debt, it’s a good idea to get advice before taking any action.
How we can help locally
At Citizens Advice Hull and East Riding, we know how stressful benefit problems can be – especially when you’re already balancing caring responsibilities, work and household bills.
We can help you to:
- Understand what the changes mean for you
- Check whether a past overpayment looks correct
- Make sense of letters from DWP
- Get support if you’re struggling to repay a debt
If you’re a carer in Hull or the East Riding and feel unsure about your Carer’s Allowance, please get in touch. You don’t have to deal with this on your own.
What happens next?
The Government says the reassessment process will begin in 2026, with more details to follow. We’ll keep our website updated as new information becomes available.
For many carers, this review is long-overdue recognition that the system hasn’t worked as it should. While changes won’t happen overnight, this is an important step towards fairer treatment – and peace of mind – for carers across Hull and the East Riding.