A new review has revealed that hundreds of thousands of carers may have been forced to repay debt due to unclear guidelines. The Sayce Review, initiated in October last year, discovered that many individuals claiming Carer’s Allowance were left with unexpected debts as they didn’t comprehend what changes to their pay needed reporting.

From 2015 to September 2025, there were 210,000 Earnings related Carer’s Allowance Overpayments. Following the release of the Sayce Review’s findings, the government has stated that 185,000 unpaid carers are set to have their overpayments reviewed.

The Department for Work and Pensions (DWP) has conceded that carers relying on the benefit have been let down and that measures are being implemented to rectify the issue. The government also confirmed that it will reduce or cancel the debts of carers whose overpayments are found to be lower than initially calculated.

Work and Pensions Secretary Pat McFadden, commented: “Carers are vital to our communities, and when the system lets them down, we have a duty to put it right. The Sayce Review has shown us clearly that the guidance on earnings averaging was confusing. We inherited this mess from the previous government, but we’ve listened to carers, commissioned an independent review, and are now making good for those affected.

“Rebuilding trust isn’t about warm words – it’s about action, accountability, and making sure our support works for the people who need it most.”

Who is eligible for Carer’s Allowance?

To claim Carer’s Allowance, you must be providing care for someone for at least 35 hours a week. Additionally, the person being cared for must also be receiving certain benefits, including:

• Personal Independence Payment – daily living component
• Disability Living Allowance – the middle or highest care rate
• Armed Forces Independence Payment
• Adult Disability Payment – daily living component at the standard or enhanced rate
• Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
• Scottish Adult Disability Living Allowance – the middle or highest care rate
• Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
• Child Disability Payment – the middle or highest care rate
• Pension Age Disability Payment
• Attendance Allowance

It’s important to note that you do not have to be related to the person being cared for or live with them. However, if someone else also helps care for the person, only one can claim Carer’s Allowance.

Moreover, you won’t receive any extra payments from the benefit if you care for more than one person. To be eligible, the following must also apply:

• Your earnings are £151 or less a week after tax, National Insurance and expenses
• You’re not in full-time education
• You spend at least 35 hours a week caring for someone
• You’re 16 or over
• you’re not studying for 21 hours a week or more
• You’ve been in England, Scotland or Wales for at least 2 of the last 3 years (this does not apply if you’re a refugee or have humanitarian protection status)
• You’re not subject to immigration control
• You normally live in England, Scotland or Wales, or you live abroad as a member of the armed forces (you might still be eligible if You’re moving to or already living in an EEA country or Switzerland)

How much does Carer’s Allowance pay?

The allowance can be paid either weekly or every four weeks at a rate of £83.30 and may also offer additional perks if you’re not in employment. The type of care that qualifies someone for Carer’s Allowance can vary, but it can include tasks such as assisting with general household chores like shopping, washing and cooking for someone, or even accompanying the person being cared for to a doctor’s appointment.

Changes that could lead to overpayments

DWP guidance highlights that any changes to circumstances which could affect your claim must be reported. Failing to do so could lead to you being overpaid, taken to court, or facing a penalty.

Such changes can include:

• Someone else who cares for the same person claiming Carer’s Allowance instead of you
• Changes to your income
• Starting or ending full-time education
• You or the person you care for changing address
• Starting a job
• Someone else who cares for the same person claims the carer’s element of Universal Credit
• The person you care for no longer getting their disability benefit
• Changes to your immigration status, if you’re not a British citizen
• Stopping being a carer

You may also risk being overpaid if you gave the DWP the wrong information or were overpaid by mistake. If you believe you have been overpaid on carer’s allowance you need to tell the DWP straight away and may haave to pay back any amount that you’ve been overpaid by.

Further details on Carer’s Allowance can be found here.