Carers Allowance Overpayments reassessment exercise launched by Government

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Carers Together, strongly welcomes the Government’s launch of a major reassessment exercise for Carer’s Allowance overpayment cases. This pivotal step addresses years of systemic failures that have unfairly burdened unpaid carers and follows the urgent recommendations of the Independent Review led by Liz Sayce OBE, published in November 2025.

The Independent Review confirmed what many advocacy groups have long argued: many overpayments related to fluctuating earnings were not the result of individual errors by carers. Instead, they were driven by systemic issues within the Department for Work and Pensions (DWP), which utilized operational guidance that failed to accurately reflect the statutory position on averaging earnings between April 2015 and September 2025.

In response, the Government has committed to reassessing 200,000 cases across England, Wales, and relevant devolved cases in Scotland. The DWP estimates that 25,000 carers will see adjustments to their overpayments, with some individuals eligible for partial or full refunds.

“This reassessment is a long-overdue victory for unpaid carers who have faced undue financial stress and anxiety through no fault of their own,” said [Name], [Title] at Carers Together. “By acknowledging the systemic errors in DWP guidance, the Government is finally taking responsibility. While it cannot erase the hardship many have already endured, it represents a crucial step toward fair redress and restoring trust.”

Crucial Guidance for Affected Carers

Carers Together is issuing the following vital information to all carers who currently have, or previously had, overpayments relating to fluctuating earnings:

  • No Action is Required: Carers do not need to contact the DWP. The Department will reach out directly when an individual’s case is being reassessed.
  • Direct Communication: The DWP will write to carers in writing once their case has been reviewed to confirm whether any adjustment is being made.
  • Varied Outcomes: While most cases will see no change, a portion of carers will receive a full or partial refund.
  • Extended Timeline: The reassessment process is extensive and could take up to three years to complete. Carers are asked to be patient as they await communication.

For carers seeking immediate guidance or support regarding overpayments, Carers Together recommends contacting advice@carersuk.org or visiting the dedicated overpayments support hub provided by our partners at Carers UK.

Carers UK will be hosting a webinar with key Department for Work and Pensions (DWP) officials explaining the exercise, with details below.

If you are a carer seeking guidance and advice, please email advice@carersuk.org or visit the CarersUK overpayments support hub.

Upcoming webinar with DWP officials – Tuesday 21 April, 10:00-11:30am

On Tuesday 21 April, Carers UK are holding an online webinar with officials from the DWP so you can hear more about the reassessment exercise and how you can support carers you work with. If you would like to attend this session, please register below.

Register for the online webinar by clicking here