Independent Review of Carer’s Allowance Overpayments: Progress on Response

The Government published the report of the Independent Review of overpayments of Carer’s Allowance linked to earnings, and the Government’s response to its recommendations, on 25 November 2025—the review can be found on gov.uk. Today I am providing an update on progress in responding to those recommendations, including more detail on our plans to reassess cases that may have been subject to faulty guidance on the averaging of fluctuating earnings.

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. We welcomed the report and accepted, or partially accepted, 38 of the 40 recommendations. We have already made around half of the changes that the report recommended. Work has begun on the others, but some changes will take more time to put in place.

As part of their response, the Government committed to reassessing carer’s allowance cases that may have been affected by faulty guidance on the averaging of irregularly fluctuating earnings. This guidance, which was in place between April 2015 and September 2025, did not accurately reflect the statutory position. I am pleased to announce that the reassessment exercise will begin today, 13 April 2026. Funding of £75 million has been provided for the exercise in the financial years 2026-27 to 2028-29.

The Department for Work and Pensions expects to review over 200,000 cases, potentially reducing, cancelling or refunding debts for around 25,000 carers.

For the vast majority of cases, the Department has all the information it needs to reassess the case, so there will be no need for most people to do anything. The Department will contact them by SMS and letter if it needs any further information in order to conduct the reassessment.

For other, older cases, the Department may no longer hold information because GDPR rules state that personal data must be kept only for as long as necessary for the purpose for which it was collected. For these cases, the Department will open access to a straightforward online form for people to complete. We aim to do this in late 2026, building on learned lessons from the reassessment of cases for which we already hold the relevant data. The Department will work with organisations supporting carers to encourage people who think they may have been affected to register via the online form for a reassessment.

We will also let people know once their cases have been reassessed and whether any overpayment has been reduced as a result of the reassessment.

Although the independent review covered England and Wales, at the request of the Scottish Government’s Cabinet Secretary for Social Justice, the reassessment exercise will include relevant carer’s allowance cases in Scotland, including those that were administered by the Department on behalf of Scottish Ministers between September 2018 and September 2025.