DWP Under Fire: Huge Number of Carers Forced to Repay Benefits

New government figures have revealed that nearly 100,000 unpaid carers across the UK are still repaying Carer’s Allowance debts due to exceeding the earnings threshold. The issue, which has been described as an “unforgivable” financial burden on carers, has sparked outrage among campaigners and prompted government scrutiny into the fairness of the system.

Why Are Carers in Debt?

Under the current Carer’s Allowance rules, unpaid carers who provide at least 35 hours of care per week can claim £81.90 per week, as long as they earn less than £151 per week.

However, if a carer earns even a few pence over this limit, they lose the entire benefit for that week and must repay the full amount.

Key Findings from the Latest Government Data:

• 99,349 Carer’s Allowance claimants are repaying debts due to exceeding the earnings limit.
• Some carers were overpaid by the DWP without notification, leading to debts of up to £20,000.
• The total outstanding Carer’s Allowance debt has risen by £100 million over the past six years, now exceeding £250 million.

The DUP MP Jim Shannon raised the issue in Parliament, asking how many carers have an overpayment debt due to exceeding the earnings threshold. DWP Minister Andrew Weston confirmed the figures, noting that some claimants may no longer be carers or may have made fraudulent claims.

Where Are the Most Affected Carers?

A breakdown of the data by postcode region reveals the highest number of outstanding Carer’s Allowance debts in England, followed by Scotland, Wales, and Northern Ireland:

Region	Total Carers with Outstanding Debt	Carers Owing Debt Due to Earnings Over the Limit
England	116,874	81,503
Scotland	13,922	9,112
Wales	7,657	5,359
Northern Ireland	5,469	3,375

Upcoming Changes to Carer’s Allowance Rules

The government has acknowledged the issue and announced that from April 2025, the Carer’s Allowance earnings threshold will increase from £151 to £196 per week—the largest-ever increase in the limit.

This change is expected to benefit over 60,000 carers by 2029/30 and aims to reduce the risk of claimants accidentally exceeding the limit.

The Carer’s Allowance Scandal: How Did We Get Here?

A National Audit Office (NAO) report in December 2024 found that:

• The number of people with outstanding Carer’s Allowance debt has increased every year since 2018, from 80,169 in 2018 to 136,730 in 2023/24.
• The “cliff edge” rule, where claimants either receive the full allowance or none at all, leads to rapid debt accumulation.
• Many carers were not informed about overpayments for months or years, resulting in large debts.

In October 2024, the government launched a review into the issue, investigating:

• How overpayments occur and how to prevent future debt issues.
• Potential changes to the system to protect unpaid carers.
• What support can be provided to carers already in debt.

The charity Carers UK has called for urgent reforms, stating that many carers are left repaying debts for years, leading to financial hardship and mental health struggles.

A DWP spokesperson defended the repayment demands, stating:

“The Department has a duty to the taxpayer to protect public funds and to ask for money to be paid back. However, we remain committed to working with those struggling with their repayment terms and will negotiate sustainable and affordable plans.”

The Carer’s Allowance debt crisis highlights the financial risks faced by unpaid carers due to strict earnings rules. While the upcoming increase in the earnings threshold may help reduce future overpayments, many carers are still struggling to repay debts—some of which they were not even aware they had accrued.

With campaigners demanding urgent reforms, the government faces mounting pressure to fix the system, prevent further financial hardship, and ensure carers are treated fairly.

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