Committee publication · Correspondence · 15 April 2026
Correspondence from the Minister for Social Security and Disability, relating to the independent review into Carer’s Allowance overpayments
Summary
The Minister for Social Security and Disability updates the Work and Pensions Committee on implementation of the Independent Review into Carer's Allowance overpayments. The Government has accepted 38 of 40 recommendations and launched a reassessment exercise on 13 April 2025, funded at £75m over three years, to review over 200,000 cases and potentially refund debts for around 25,000 carers affected by faulty earnings-averaging guidance between April 2015 and September 2025.
Key findings
- Government accepted or partially accepted 38 of 40 Independent Review recommendations; approximately half of recommended changes already implemented
- Reassessment exercise launched 13 April 2025 with £75m funding across 2026/27–2028/29 to review 200,000+ cases and potentially reduce or cancel debts for approximately 25,000 carers
- Faulty guidance on averaging of irregularly fluctuating earnings was in place April 2015–September 2025 and did not accurately reflect statutory position
- Department holds necessary information for majority of cases; will contact carers only if additional information needed; online form to be introduced late 2026 for older cases where data no longer retained
- Reassessment exercise extends to devolved Carer's Allowance cases in Scotland at request of Scottish Government; six-monthly progress updates committed to Public Accounts and Work and Pensions Committees
Tone
ProceduralTopics
social-securitywelfare-overpaymentscarer-supportgovernment-accountabilityadministrative-error
Key actors
Sir Stephen Timms MP, Debbie Abrahams MP, Liz Sayce, Department for Work and Pensions, Carers UK, Carers Trust, Scottish Government
Notable line
“The Government inherited a system where some busy carers, already struggling under a huge weight of caring responsibilities, found themselves with unexpected debts due to overpayments of Carer's Allowance.”
Key Quotes
“The Government inherited a system where some busy carers, already struggling under a huge weight of caring responsibilities, found themselves with unexpected debts due to overpayments of Carer's Allowance.”
“The Independent Review, undertaken by Liz Sayce, showed that mistakes were made, and we are determined to put them right.”
“This guidance was in place between April 2015 and September 2025, and did not accurately reflect the statutory position.”
“Funding of £75m has been provided for the exercise in the financial years 2026/27 to 2028/29 The Department expects to review over 200,000 cases, with potentially reducing, cancelling, or refunding debts for around 25,000 carers.”
“In the vast majority of cases, the Department has all the information it needs to reassess the case.”
Source · parliament.uk record ↗