A number of unpaid carers could be on the brink of having their debts completely erased following a review into benefit overpayments. The government is poised to launch an extensive ‘reassessment exercise’ commencing in early 2026, with the aim of rectifying 10 years of systemic failures that resulted in some of the nation’s most vulnerable individuals being confronted with bills as steep as £20,000.

Families who were treated like ‘criminals’ for inadvertently violating complicated earning rules by just pennies will finally witness the Department for Work and Pensions (DWP) concede that it was their own ‘confusing’ guidance that was at fault. This admission has paved the way for a substantial refund scheme to reimburse the money taken from carers accused of overclaiming.

Unpaid carers, those who provide care for family members, friends, and elderly individuals in the local community, for instance, are exactly what their title suggests: unpaid. However, they are entitled to some support, which is provided in the form of weekly payments of £83.30 – the primary benefit for anyone who delivers at least 35 hours of unpaid care each week.

Problems begin to surface when an individual starts to earn some income, which renders them ineligible for the allowance. The ‘scandal’ stems from carers who were oblivious to the fact that they were surpassing the £196 per week threshold, and have been grappling with escalating debts due to repayment demands.

It is thought 26,000 people have been affected. However, progress is now firmly underway for those affected to reclaim their funds.

Which? financial specialist Lisa Webb featured on BBC Morning Live on Monday to clarify eligibility criteria, the application process, and steps to prevent future overpayments. The Daily Express has a comprehensive breakdown of everything you need to know.

Who qualifies?

To have your debts entirely written off, you must have been required to repay Carer’s Allowance on at least one occasion since 2015. Subsequently, if variations in your working hours or earnings during a particular timeframe caused you to inadvertently exceed the threshold, you may qualify to have your debt reduced or cancelled entirely.

“If you’ve already repaid the money, you may be entitled to a refund,” Webb mentioned. “The government hasn’t said whether anyone would be getting compensation, but it’s absolutely worth considering that you might be getting at least some money back.”

How to apply

Those impacted needn’t do anything at present. The DWP is anticipated to reach out to individuals “in due course”, which could span anywhere from the next few days to several months ahead.

Webb advised: “Keep hold of all your paperwork and make sure you have a record of everything. Check the Carers UK support pages and regularly visit the relevant official websites so you stay up to date with any updates.”

A scam alert has been sounded, with individuals being strongly advised to exercise extreme caution regarding unexpected calls, messages or emails. Those harbouring any concerns should solely rely on official channels for information, such as the gov.uk website.