Thousands of unpaid carers will have historic overpayments cancelled or repaid after a damning review found many were treated as criminals for earning as little as a few pence over their earnings limit. The year-long investigation concluded that 185,000 carers in England and Wales, who received carer's allowance between 2015 and September 2025, had been hit with unmanageable debts because of unclear and confusing regulations.
The review, published on Tuesday, found that many carers unwittingly racked up huge debts after breaching the earnings threshold – which stood at £151 a week until April this year, when it rose to £196. The so-called cliff edge meant that earning just a penny over the limit resulted in losing the entire £83.30 weekly allowance. Some carers were forced to quit their jobs as a result.
Carer's allowance is paid to people who spend at least 35 hours a week providing regular care to someone with a disability who receives a qualifying benefit such as the daily living component of personal independence payment or disability living allowance.
System failures exposed
The review, carried out by Liz Sayce, found that the Department for Work and Pensions treated earnings inconsistently, meaning carers were unable to comply with the rules. Many carers felt they were treated as criminals, with resulting feelings of fear and shame, the report concluded.
Sayce said: «My review found that overpayment debt has had major impacts on carers' health, finances and family wellbeing, and been a disincentive to work. I'm glad Government now plans to review cases and cancel or reduce debts affected by flawed guidance. This wasn't wilful rule-breaking – it simply wasn't clear what earnings fluctuations carers should report.»
Unprecedented action welcomed
Carers UK chief executive Helen Walker welcomed the review's acknowledgement of system failures. She said: «The move to reassess cases and repay or write off debt in certain circumstances is unprecedented in our view, a righting of a clear wrong. It is addressing this injustice head on.»
Walker added that the charity is hopeful this can be the start of rebuilding carers' trust in the system after what has been challenging and distressing for many unpaid carers.
Government accepts recommendations
Work and Pensions Secretary Pat McFadden said: «Carers are vital to our communities, and when the system lets them down, we have a duty to put it right. The Sayce Review has shown us clearly that the guidance on earnings averaging was confusing. We inherited this mess from the previous government, but we've listened to carers, commissioned an independent review, and are now making good for those affected.»
Chancellor Rachel Reeves added: «This will be welcome news for thousands of carers failed by the system under the previous government. We will right these wrongs, carers give so much to their families and to their local communities, and they deserve our support.»
The review's recommendations include removing the severe ambiguity that stopped carers from understanding what they needed to report, speeding up plans to address the cliff edge, and modernising processes around data and benefits. The government has accepted the vast majority of the recommendations.
Note: This article was created with Artificial Intelligence (AI).
