Last Updated: July 29, 2026
The Government has announced the benefits rules that lead to thousands of unpaid carers across the UK having to pay back £1000s are to be overhauled.
An investigation by The Guardian released over six months ago, revealed that tens of thousands of carers were being ordered to repay overpayments, with some facing criminal prosecution if they did not repay, due to breaching the earning limits associated with carer’s allowance.
Liz Kendall, Secretary of State for work and pensions, has opened an independent review of how carers allowance overpayments were able to be accrued on such a large scale. She said, ‘This review marks a big step forward for unpaid carers, shedding light on this issue so we can put things right.’
The review will be led by Liz Sayce, former Chief Executive of Disability Rights UK. When asked about the review and the overpayments, Sayce said, ‘My work aims to get to the bottom of how overpayments have occurred and how to prevent [carers] facing these difficulties in future.’
The Liberal Democrats are urging for the roughly £250m owed to be written off, for the allowance to be raised and for the unclear earning rules to be overhauled. Ed Davey, party leader of the Liberal Democrats and a carer himself, has said the last Government should have acted but did not, and urges the new Government to make these much-needed changes.
There are around 5.8 million unpaid carers in the UK, more than 1 million are in poverty. Carer’s allowance is currently a weekly payment of £81.90. However, carers can only be paid £151 a week if they want this payment and at the current rate of national minimum wage that accounts for roughly 13 hours of work a week.
Research has revealed that carers affected by the overpayments scandal earned as little as £1 extra a week over the earning limit. A survey conducted by Carers UK of 12,500 unpaid carers, found that of the 40% who claim or claimed carer’s allowance one in five were affected by the overpayments scandal after unknowingly breaching the earnings limit. It was found that many had earned more by being paid for overtime or receiving a bonus.
Carers that breached the earning limit have been ordered to repay their entire carer’s allowance, no matter how much they earned over the limit. For example, if a carer earned £152 a week instead of the £151 limit for 52 weeks, they would have been ordered to repay the total £4,258.80 of carers allowance they received rather than repaying the £52 they earned above the limit.
The survey conducted by Carers UK found that, four in ten carers of the 40% of respondents that receive or received carer’s allowance said that the restrictive rules and risk of harsh punishment have led them to give up their paid employment, reject pay rises and forgo paid training opportunities in order to continue receiving the allowance.
Others have reportedly gotten another job and abandoned receiving carer’s allowance all together. However, this means they cannot spend as much time caring for their loved ones that need them.
Helen Walked, Chief executive of Carers UK, said, ‘It’s a scandal that so many carers, who have unwittingly received overpayments, are facing additional stress and anxiety. Many are under huge pressure already and in precarious financial positions due to their caring role.’
