PARLIAMENTARY WRITTEN QUESTION
(23 April 2025)

To ask the Secretary of State for Work and Pensions, whether her Department has made an assessment of the the potential merits of writing off historical Carer’s Allowance overpayments in cases involving small or inadvertent breaches of the earnings limit.

Asked by:
Sarah Gibson (Liberal Democrat)

The Government inherited a system where busy carers, already struggling under a huge weight of responsibility, have been left having to repay large sums of overpaid Carer’s Allowance (CA) – sometimes worth thousands of pounds.

We needed to understand exactly what had gone wrong so we could set out our plan to put things right. That is why we launched an Independent Review of earnings-related overpayments of CA. The review is investigating how overpayments of CA have occurred; what can best be done to support those who have accrued them; and how to reduce the risk of these problems occurring in future. It is anticipated that the Independent Review will arrive at its conclusions this summer. We will, of course, carefully consider the findings of the review and its recommendations. Both the report from the Independent Review and the Government’s response will be published.

We have been clear (including in the Terms of Reference) that the review is not a substitute for legal proceedings (Mandatory Reconsiderations/Appeals) and the existence of the review does not prejudice any business-as-usual activity by DWP. It would not be appropriate to speculate on the findings of the review or any potential outcomes.

Where overpayments do occur, the Department has a duty to the taxpayer to protect public funds and to ask for money to be paid back. We remain committed to working with anyone who is struggling with their repayment terms and will always look to negotiate sustainable and affordable repayment plans.

Answered by:
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