The Department for Work and Pensions (DWP) has faced fierce criticism after figures revealed that only a fraction of historic Carer's Allowance overpayment cases have been cleared, leaving thousands of unpaid carers in limbo until March 2029.
According to figures published by the government on Wednesday (14 October), approximately 230,900 identified cases were awaiting review and clearance as of early September. Between April and last month, just 2,400 cases were fully reviewed.
Campaigners call progress 'deeply disappointing'
Campaigners have branded the slow pace of progress as "deeply disappointing," warning that vulnerable carers are being left to endure continued financial hardship and uncertainty while waiting for justice.
The controversial rules surrounding Carer's Allowance have previously been dubbed a national "scandal." Under the system, unpaid carers who earn even a single penny over the weekly earnings limit lose their entire entitlement - a harsh policy known as the "cliff edge."
The rules left thousands unwittingly racking up unmanageable levels of debt, with some forced to quit their jobs or face prosecution. A year-long independent review, led by Liz Sayce and published in 2025, concluded that DWP rules were "inconsistent and unclear," resulting in many carers feeling they were "treated as criminals, with resulting feelings of fear and shame."
Historic overpayments and the earnings threshold
Historic overpayments led to many carers – who had to earn £151 a week or less to qualify for the allowance – unwittingly racking up unmanageable levels of debt and some quitting their jobs as a result. The earnings threshold rose from April to £204 or less a week after tax, National Insurance and expenses.
Carer's allowance, which is currently £86.45 a week, is paid to someone who spends at least 35 hours a week providing regular care to someone with a disability. The Government previously said 185,000 unpaid carers, who were in receipt of the allowance between 2015 and September 2025 in England and Wales, would have their overpayments reviewed.
The review, carried out by Liz Sayce, found that the way the DWP "treats earnings, especially in averaging and allowable expenses, is inconsistent and unclear, meaning carers were unable to comply with the rules." It said the so-called "cliff edge" – which meant someone earning just a penny over the limit saw them losing the entire allowance – "means the impact of this on carers has been severe and acted as a disincentive to undertake paid work amongst carers wishing to combine caring with some paid work."
DWP defends progress and next update
The latest figures published this week by DWP showed the original decision was changed in 200 cases, debt was reduced by on average £251 for 100 carers, and average repayments of £342 were issued to 100 carers.
The DWP said: "The department is now methodically working through the more than 230,000 cases that will need to be reviewed. The exercise is expected to be completed by March 2029."
Helen Walker, chief executive of Carers UK, questioned whether the department will be able to complete the task by then, adding: "These numbers are deeply disappointing. After years of waiting for justice, only a small number of carers have had their cases reviewed five months into this exercise."
"The vast majority still face a lengthy and uncertain wait for resolution, all whilst enduring the ongoing financial hardship caused by these delays," she added.
Ms Walker acknowledged the Government had "invested in funding and resources" in the review and that an "accurate and robust reassessment process" is important, but "there must be a clear and realistic plan to accelerate progress." DWP said its next update will be published next spring.
