Carer's Allowance: Overpayments
The question
To ask the Secretary of State for Work and Pensions, whether he has made an assessment of the potential merits of pausing deductions being taken from Carer's Allowance payments as a result of earnings-related overpayments while the Department reassesses those cases.
Answered by Sir Stephen Timms
We have been clear that the Sayce review into earnings related Carer’s Allowance overpayments was not a substitute for legal proceedings. The report’s findings do not prejudice business-as-usual activity by DWP. The department must balance fairness for unpaid carers and its duty to taxpayers.
The department’s guidance on averaging earnings, for those with fluctuating earnings, did not accurately reflect the legislation between 2015 and summer 2025. We are, in response, planning a reassessment exercise. Overpayment recovery work will continue during the reassessment exercise. Should reassessment lead to an amended decision in an individual case, we will adjust entitlement to Carer’s Allowance and take the appropriate action depending on the customer’s circumstances. We will set out more details about the reassessment exercise in the coming weeks.
For anyone who has had an overpayment, DWP’s Debt Management Service is available to discuss their repayment terms.
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