Carers have just days left to respond to a Department for Work and Pensions (DWP) call for evidence on the future of Carer's Allowance, following a scandal over large repayment demands. The deadline is midnight on August 18, with the DWP asking unpaid carers and organisations to share their experiences of the current system.
Review of Earnings Rules
The review is examining whether earnings rules should be changed, including the possibility of an earnings taper to replace the current system, which can create a cliff edge. Under current rules, a carer can earn up to £204 a week after tax, National Insurance and allowable expenses while receiving Carer's Allowance. Going slightly above the limit can mean losing the whole payment rather than reducing it. The allowance itself is currently £86.45 a week.
The review follows a scandal in which thousands of carers were hit with demands to repay money after breaching earnings rules. An independent review led by Liz Sayce found that one in five Carer's Allowance claimants who combined caring with paid work had an earnings-related overpayment detected between 2019 and 2024. It also found that the DWP examined only around half of alerts from HM Revenue & Customs about possible overpayments, meaning the true scale could have been higher.
Government Response
The review concluded that unclear and inconsistent guidance had left carers struggling to understand what they were required to report, with some facing demands for large sums they had not realised they owed. The Government has launched a reassessment of affected cases, with more than 200,000 Carer's Allowance cases being reviewed. Around 25,000 unpaid carers could have debts reduced, cancelled or refunded. The exercise covers certain earnings-related overpayments arising between April 2015 and September 2025.
The independent review described carers being asked, often unexpectedly, to repay large amounts while trying to combine unpaid caring with paid employment. Now the Government wants to hear directly from carers about what a modernised system should look like.
Carers UK Response
Tamara Sandoul, head of policy and public affairs at Carers UK, said: "Carers Allowance is now over 50 years old, and it was designed at a very different time." She added: "We need to make sure that it works for carers today to make sure that carers in a variety of situations are able to work, to study, and to live their daily lives being supported." Ms Sandoul urged unpaid carers to respond to the consultation, saying: "I want to encourage as many unpaid carers to fill out the call for evidence and tell the government what they want to carry us allowance to look like going forward. Without your voice, nothing will change."
The DWP says evidence can include personal experiences, written submissions, existing data or unpublished research. The review is particularly interested in how the earnings rules operate in real life and whether a taper could make the system fairer and more predictable.
How to Have Your Say
The Government has already increased the earnings limit from £151 to £204 a week, but the all-or-nothing system remains. Official figures say the increase means more than 60,000 additional people could be able to receive Carer's Allowance between April 2025 and March 2030. For carers who have suffered because of overpayment problems, the DWP says they do not need to contact the Carer's Allowance Unit to trigger a reassessment. Those covered by the exercise will be contacted if a decision is made or further information is needed.
Carers can respond online to the DWP's call for evidence before the August 18 deadline. Responses can also be sent by email to carer.callforevidence@dwp.gov.uk. The consultation is available in accessible formats, including Easy Read, audio, Braille, large print, Welsh and British Sign Language.
