PARLIAMENTARY DEBATE
Review of Carer’s Allowance Overpayments - 8 December 2025 (Commons/Commons Chamber)

Liz Sayce did an outstanding forensic job in getting to the bottom of the carer’s allowance overpayment problems. We have accepted or partially accepted 38 of her 40 recommendations. The Department will reassess overpayments incurred between 2015 and last summer where fluctuating earnings were an issue, and we will set out detailed plans in the new year.

I thank the Minister for his response. As he well knows, over the last decade, around 185,000 unpaid family carers have been pursued by the Department for Work and Pensions to return overpayments in their carer’s allowance. Through no fault of their own, many working carers have faced bills that have often run into thousands of pounds. It is incredibly positive that, after years of inaction from the Tories, this Government have acted. Does the Minister share my hope that trust might now be rebuilt between the state and the near 6 million unpaid family carers in this country?

My hon. Friend is a great campaigner for carers on this issue and others. She is absolutely right: this is a very serious problem that was ignored for 10 years, despite there being quite a lot of publicity about it. I hope, as she says, that trust will now be rebuilt as we fix these problems in the coming months.

The hon. Gentleman will know that the carer’s allowance has an earnings threshold, which we have increased very significantly—the biggest increase in the earnings threshold that there has ever been. We are also looking, in the longer term, at introducing a taper to carer’s allowance, instead of the cliff-edge earnings threshold that is still there at the moment. That will not be a quick fix, but once it is in place, I think it will help with the concern he raises.

I call the Liberal Democrat spokesperson.

The Liberal Democrats welcome the fact that the Government have accepted the findings of the Sayce review into carer’s allowance overpayments, but what assurances can the Minister give that the Government will stop hounding carers about overpayments? Will the Government also apologise?

I am very sorry about what happened to many carers. For example, only about half of the alerts that came into the Department from HMRC were checked, so overpayments that the Department had been notified of carried on for months and months. Of course, genuine overpayments do still need recovery and that work will continue. If people run into difficulties, it is always worth talking to the DWP debt management service.