The Government has announced that tens of thousands of unpaid carers will have debts reduced, cancelled, or refunded following a decade of confusing official guidance on earnings rules.
The Department for Work and Pensions will review over 200,000 Carer's Allowance cases, with around 25,000 carers potentially seeing debts reduced, cancelled entirely, or receiving refunds.
From April 2015 to September 2025, guidance on how to average irregularly fluctuating earnings did not accurately reflect the law, meaning carers who combined paid work with at least 35 hours of unpaid caring unknowingly exceeded the weekly earnings limit and accrued debts.
Carers do not need to contact the DWP, as the department will get in touch if further information is required.
The announcement follows the Government's acceptance of 38 of 40 recommendations from the independent Sayce Review in November 2025.
The Government is also exploring whether the current cliff-edge earnings rule could be replaced with a tapered system to reduce the risk of future overpayments.
Helen Walker, chief executive of Carers UK, said: ‘We are pleased to see the government taking decisive action to start putting right the failings of the past and provide carers with the redress they deserve. The reassessment process marks an important step in tackling these systemic failures.’
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