Over 100 Organisations Call For Write Off of Carers Allowance Overpayment Debts

Organised by Carers UK, and with DR UK as one of the signatories, asks the Government to commit to publishing its report into Carer’s Allowance overpayments in early summer, to implement the recommendations quickly and to write off existing substantial overpayments debts where carers could have been notified sooner by DWP. 

The joint letter says:

“Dear Secretary of State,

We are writing to express our ongoing concerns about the continued rise in the number of outstanding Carer’s Allowance overpayment debts.

Your announcement in October 2024 to establish an independent review, led by Liz Sayce OBE, was widely welcomed. We appreciate the progress the review team has made, particularly in gathering evidence from unpaid carers affected by these debts. We also recognise that, however swiftly the Government might implement changes, reform will take time.

Given this, we are concerned that the number of carers facing overpayment debts continues to rise. Comparing Department for Work and Pensions (DWP) figures for May 2024 and February 2025, the total number of outstanding overpayments has increased by over 9,000 with 143,922 carers now affected.

This comes on top of the 71% rise in overpayments debts that occurred between 2018- 19 and 2023-24, where the number of cases rose from 80,169 to 136,730, despite the issue being subject to significant investigation by parliamentary committees and the National Audit Office.

While we await the independent review’s findings, we believe that the Government could be doing more to reduce the hardship unpaid carers are facing because of a fundamentally unfair system. Unless mitigating measures are implemented now, unpaid carers will continue to be affected by this scandal.

As a result, we are asking you to halt the creation of new Carer’s Allowance overpayment debts until the independent review has concluded and its recommendations are implemented.

Once the independent review has concluded, we also ask that you:

1. Commit to publishing its final report in early Summer and implement its recommendations quickly.

2. Look to write off existing substantial overpayments debts where carers could have been notified sooner by DWP.

Under the current system, carers can lose a year’s Carer’s Allowance (£4,258.80) for exceeding the earnings threshold by as little as £52 annually (£1 a week).

This cliff edge often forces carers to choose between poverty and debt. Many already struggle financially, and these debts impact entire households, including children and disabled family members. It has also become very apparent that the lack of transparency around the way earnings are averaged is causing huge issues for unpaid carers.

Carers make an invaluable contribution to society. We want the system to reflect their worth, rather than leaving them in debt for trying to balance paid work and unpaid care.

We look forward to your timely response and hope to see urgent action on this matter.”

Helen Walker, Chief Executive of Carers UK said:  

“Thousands of carers are still being impacted by this scandal. Whilst we appreciate the progress the review team has made, we’re concerned that overpayments debts are continuing to rise, bringing life-changing consequences for carers and their families. We need to act now to protect carers – halting the creation of new overpayments debts until the review has concluded and we have a better system in place.  

“Currently carers can lose a year’s Carer’s Allowance (£4,258.80) for exceeding the earnings threshold by as little as £52 annually (£1 a week). Carers make an invaluable contribution, and the Government could be doing more to reduce the hardship they are facing because of a fundamentally unfair system. 

“Many carers will be paying back debts for years. Some have left employment since due to the stress and fear of having another overpayment. With 1.2 million unpaid carers living in poverty in the UK, we need a system which reflects their worth better supporting them to balance paid work and unpaid care.” 

The joint letter, with a full list of its signatories, is available from carersuk.org.

See also our related news story DR UK submits evidence to review of carers allowance.