DWP demands repayments from 150,000 unpaid carers

The Department for Work and Pensions (DWP) is sending letters to about 150,000 unpaid carers, asking them to repay money overpaid in benefits. Many of these letters have gone out already, and campaigners warn that the number may increase. The affected carers provide care for ill or disabled friends or family members. The DWP often calculates debts involving small amounts, and even a minor earnings violation can trigger a large repayment demand. For instance, if a carer exceeds the earnings limit of £151 per week by just a few pennies, they could owe back their entire Carer’s Allowance for that week. Recent data shows that from May 2024 to February 2025, there was an increase of over 9,000 cases of outstanding Carer's Allowance debts. Currently, around 143,922 people are caught in this situation. Campaign groups, including Carers UK, have reached out to the Secretary of State for Work and Pensions, Liz Kendall. They are urging her to stop creating new debts until a review of the system is completed and improvements are made. Carer’s Allowance, which is available to those who provide care for at least 35 hours per week, offers £81.90 each week. However, the strict earnings limits make it easy for carers juggling jobs to unwittingly exceed the threshold. Carers UK points out that many of these overpayments could have been avoided if the DWP had acted more promptly. Helen Walker, the Chief Executive of Carers UK, emphasized the urgent need for change. She highlighted the significant stress these debt letters bring to carers and their families. The current system can lead to serious financial hardship. Many carers face potential losses of thousands of pounds due to what might be minor earnings violations. With around 1.2 million unpaid carers in poverty in the UK, campaigners argue that a fairer system is necessary to support them better in their dual roles of working and caring.