Unpaid carers may get Carer’s Allowance debts cancelled – here's how

Tens of thousands of unpaid carers could soon have their Carer’s Allowance debts reduced, cancelled, or even refunded after the government admitted its own guidance caused years of confusion. 

The Department for Work and Pensions (DWP) says more than 200,000 Carer’s Allowance cases will now be reviewed. Around 25,000 carers could benefit. 

Why this is happening 

Between April 2015 and September 2025, the government gave unclear guidance about how carers should report irregular or fluctuating earnings. 

This meant many carers, who must stay under a weekly earnings limit to get Carer’s Allowance, accidentally went over the limit without knowing. As a result, large debts built up even though carers were following the guidance they were given. 

An independent report, the Sayce Review, found the rules weren’t clear enough and didn’t match what the law actually said. Ministers have now accepted 38 out of its 40 recommendations. 

The government has said this was a “failure of the system”, not of carers. 

Who will be reviewed 

DWP will look at cases where: 

• Carer’s Allowance overpayments happened because of unclear guidance on averaging fluctuating earnings 

• The case falls between April 2015 and September 2025 

If your overpayment happened for a different reason, for example, forgetting to report changes, you won’t be included in this review. Around 200,000 cases will be checked. About 25,000 carers may have their debt reduced, cancelled, or refunded where it’s already been paid back.  

Do carers need to do anything? 

No, you don't have to do anything. You do not need to get in touch to be part of the review. DWP already holds most of the data it needs. If it does need something from you, it will contact you directly. 

Changes already made to support carers 

The government says it has already put several measures in place to support carers. Here’s a quick overview.  

Raised the earnings limit 

From April 2026, carers can earn up to £204 per week (after tax and certain expenses) and still receive Carer’s Allowance. That’s roughly £10,000 a year, depending on your circumstances. 

Updated the guidance 

The rules on fluctuating earnings have now been rewritten to be clearer and legally accurate. 

Started exploring long‑term reforms 

The government is looking at: 

• automating earnings checks to reduce errors 

• replacing the “cliff‑edge” rule with a taper, so going slightly over the limit doesn’t remove the whole benefit 

This is part of wider reforms as Carer’s Allowance marks its 50th anniversary in 2026. 

How to get free help 

If you're unsure whether you might be affected, or you want support when the review begins, you can get free help from Carers UK, Carers Trust, or even the DWP’s own support teams. You can find out more about this on the government website.