Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Accepted
Carer's Allowance overpayments, driven by exceeding earnings limits, fluctuated significantly annually.
Recommendation
From 2018–19 to 2023–24, the number of new Carer’s Allowance overpayments identified by the Department each year fluctuated between 32,500 and 60,800. The main cause of Carer’s Allowance overpayments is a claimant having earnings which exceed the permitted limit.53
Government Response Summary
The government agrees to provide the Public Accounts and Work and Pensions Committees with six-monthly updates on its progress with identifying and resolving the cases of carers affected by its inaccurate guidance, beginning in September 2026.
Government Response
Accepted
HM Government
Accepted
7. PAC conclusion: Inaccurate operational guidance has led the department to incorrectly assess around 26,000 carers as having been overpaid Carer’s Allowance. 7. PAC recommendation: Within six months, DWP should write to update the Committee on its progress with identifying and resolving the cases of carers affected by its inaccurate guidance. 7.1 The government agrees with the Committee’s recommendation. Recommendation implemented: First of rolling 6 monthly updates in September 2026. 7.2 The department has accepted 38 of the 40 recommendations set out in the Sayce review and has appointed a Senior Responsible Owner to make sure it delivers on these. The department has already increased the weekly Carer’s Allowance (CA) earnings limit by a record amount; changed some of its guidance; and are working with users and carers’ organisations to make sure communications work for customers. Going forward, the government will be modernising the treatment of earnings in CA to help reduce the number of overpayments occurring in future. This is being explored through discovery work on the possibility of automating the calculation of earnings and potential solutions to reduce the impact of the current cliff edge, including exploring an earnings rule with a taper. 7.3 The department will continue putting things right by reassessing affected cases, and potentially reducing, cancelling, or refunding debts for an estimated 26,000 carers. More detail 38 on the reassessment exercise will be made public soon. In most cases, the department will contact people affected if it requires more information to conduct the reassessment. 7.4 The department will write to both the Public Accounts and Work and Pensions Committees every six months with a progress update. This will enable the Committees to scrutinise progress. The department will also include information in its Annual Report and Accounts.