New DWP warning to people on Carer’s Allowance ahead of rise to earnings threshold

The Department for Work and Pensions (DWP) has said it recognises the contribution unpaid carers make by helping the most vulnerable people in society and is “determined” to provide them with the support they “need and deserve”. However, Minister for Transformation Andrew Western, also warned that people on Carer’s Allowance have a “responsibility to ensure they are entitled to benefits they claim and to inform the DWP of any changes in their circumstances that could impact their award”.

In the written response to DUP MP JIm Sahnnon, the DWP Minister also confirmed that of the 143,922 unpaid carers with an outstanding debt of the benefit, some 99,349 are due to overpayments due to earnings over the current £151 weekly income threshold - 60 per cent of all Carer’s Allowance debt.

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In the written response to Mr Shannon, who asked about the number of unpaid carers who have been overpaid across the UK, Mr Western said: “This Government recognises and values the vital contribution made by carers in supporting some of the most vulnerable in society, including pensioners and disabled people. We are determined to provide unpaid carers with the support they need and deserve.

“From April 2025, the Government is boosting the Carer’s Allowance earnings threshold by £45 a week to £196, benefitting more than 60,000 carers by 2029/30. This is the biggest ever cash increase in the earnings threshold for Carer’sAllowance.

“Claimants have a responsibility to ensure they are entitled to benefits they claim and to inform the DWP of any changes in their circumstances that could impact their award.”

He continued: “We understand that providing care can be a demanding role, which is why we are trialling new ways of communicating with customers to support them in fully understanding their responsibilities to report changes in their circumstances, such as employment, including through a trial of text message reminders.”

The DWP Minister also said that an independent review into the issue of overpayments of Carer’s Allowance in cases where earnings have exceeded the entitlement threshold has already started. The review will investigate how overpayments of Carer’s Allowance related to earnings have occurred, how the DWP can best support those who have accrued them, and how to reduce the risk of these problems occurring in future.

He added: “We expect review findings and recommendations to be submitted to the Department in early summer 2025. Liz Sayce OBE, the Independent Reviewer, is keen to hear from interested parties.”

Directly addressing the issue of overpayments, the DWP Minister said: “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.”

Information on the volume of customers with an outstanding Carer’s Allowance debt and the volume of customers with a Carer’s Allowance overpayment debt as a result of breaching the earnings limit is provided below.

These numbers includes people who are no longer receiving Carers Allowance, people who are no longer carers and people who made fraudulent claims and were never entitled to carers allowance.