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DWP Starts Review of 200,000 Carer’s Allowance Cases to Cancel or Cut Debts

The move follows an independent review that found unclear earnings rules wrongly triggered overpayments.

Overview

  • Britain’s welfare department, which confirmed the plan on Monday, is reassessing more than 200,000 cases from 2015 to 2025 and expects about 25,000 carers to see debts reduced, cancelled or refunded.
  • The exercise only covers overpayments caused by guidance on averaging irregular earnings that did not match the law between April 2015 and September 2025.
  • Most carers do not need to contact the DWP because officials say they already hold the data and will get in touch if more details are needed.
  • Ministers accepted 38 of 40 Sayce Review recommendations and set aside £75 million, after the review found “ill‑defined” guidance and a cliff‑edge rule that withdrew the whole benefit for earning even a penny over the limit.
  • Charities report carers faced large debts, stress and lost work, and officials are now exploring a taper to replace the cliff edge and new links to HMRC earnings data, alongside a higher weekly earnings cap of £204.