Unpaid carers were asked to repay £33 million in 2025-26 as a result of 32,559 overpayments by the Department for Work and Pensions (DWP), new figures reveal. This comes despite reforms introduced over a year ago specifically designed to prevent carers from falling foul of the system.
Extreme Debts and Slow Progress
The number of carers accruing extreme debts of more than £20,000 rose year on year from 46 to 78, suggesting these overpayments had only been recently identified after going undetected for up to five years. More than half of all overpayments were for more than £500, indicating about 16,000 overpayments went unchecked for at least six weeks, often longer. Approximately 1,166 carers accrued over £5,000, potentially exposing them to fraud investigations.
Labour MP Anna Dixon, chair of the all-party parliamentary group on carers, said: “It is shocking unpaid carers are still being hit with large overpayment debts and left to shoulder the consequences of official failures. I hope the DWP will investigate why the numbers remain so high and be transparent with carers and parliament about the scale of this problem and what it intends to do to put it right.”
Root Causes and Ongoing Issues
An independent review of carer’s allowance overpayments published in December found “systemic issues” and poor leadership by the DWP, rather than carer negligence or fraud, at the root of the scandal. It described a mass issuing of overpayments through an opaque, shambolic, and punitive system that profoundly affected carers’ health, leaving them at the “whim of a faceless machine.”
Ministers vowed nearly two years ago, after an award-winning Guardian investigation, to correct longstanding flaws including draconian “cliff edge” penalties that could land a carer with a £4,488 bill for earning 1p a week more than allowed, and unlawful internal guidance preventing carers from averaging irregular earnings.
DWP Actions and Criticisms
The DWP has promised to reassess and reimburse tens of thousands of overpayments due to the unlawful averaging policy, but has yet to explain how it will compensate carers punished even after following earnings reporting rules or those affected by universal credit problems. Since April 2025, ministers ordered the DWP to investigate 100% of electronic alerts (Verify Earnings and Pensions, or VEPs) to spot overpayments within days, but progress appears slow.
Emily Holzhausen, director of policy at Carers UK, said: “We need a clear explanation from the government as to why recoverable amounts for some individuals are so high after making a promise to investigate 100% of VEPs. It is unacceptable this level of debt is being allowed to mount up.” Dominic King-Carter, director of policy at Carers Trust, added: “The data bring continued uncertainty to carers who fear they will be caught up in the system. This is an even bigger challenge than we previously thought.”
A DWP spokesperson said: “We understand the huge difference unpaid carers make and are determined to provide them with the support they need and deserve. That’s why we’ve taken action to fix the broken carer’s allowance system we inherited, including identifying and stopping overpayments more quickly through VEPS, delivering the biggest ever cash increase in the earning threshold, uprating the benefit, and accepting the vast majority of the Sayce review’s recommendations.”
