Carers Hit With £33 Million in Overpayments in 2025-26

The Department for Work and Pensions recorded 32,559 carer’s allowance overpayments in 2025-26, resulting in £33 million demanded in repayments, The Guardian reported. More than half of those overpayments exceeded £500, and 1,166 carers accrued debts above £5,000. Seventy-eight carers were asked to repay sums exceeding £20,000, up from 46 the previous year.

The DWP reduced both the number and cash value of earnings-related overpayments by about 30 percent compared with the prior year. Ministers had ordered the department to investigate 100 percent of Verify Earnings and Pensions alerts starting in April 2025.

An independent review published in December concluded that systemic issues and poor DWP leadership, not carer negligence or fraud, caused the overpayments.

The DWP has promised to reassess and reimburse tens of thousands of overpayments issued under an unlawful earnings-averaging policy. Ministers had vowed nearly two years earlier to correct longstanding flaws after an earlier investigation. The department’s prior policy had refused full or timely checks of the alerts despite known effects on carers.

Labour MP Anna Dixon said it was shocking that unpaid carers were still being hit with large overpayment debts. Emily Holzhausen, director of policy at Carers UK, said the government must explain why recoverable amounts remain so high after the promise of full alert checks.

Dominic King-Carter, director of policy at Carers Trust, said the data bring continued uncertainty to carers who fear being caught in the system.

A DWP spokesperson said the department understands the contribution of unpaid carers and is determined to support them. The figures were obtained under freedom of information requests.