Government accepts key recommendations of Sayce review on Carer's Allowance overpayments

The Work and Pensions Secretary has confirmed that most people will have their Carer's Allowance overpayment cases reassessed without needing to contact the Department for Work and Pensions (DWP), following the government's acceptance of key recommendations from the Sayce review¹. The announcement was made in a press release dated 25 November 2025¹.

The review examined earnings-related overpayments where the DWP failed to average fluctuating earnings correctly. The internal guidance followed by DWP decision makers between 2015 and summer 2025 did not match the law on averaging fluctuating earnings¹. The reassessment exercise covers overpayments arising between 2015 and summer 2025¹.

Money already paid by carers to settle these overpayments could be refunded, and the amount of debt reduced or written off¹. If the reassessment finds a higher overpayment than originally calculated, the DWP has said it will not ask anyone for additional money¹. The reassessment will also apply to overpayments where the person is no longer caring¹.

The DWP reassessment exercise started on 13 April 2026 and will take up to three years to complete¹. Carers who are currently repaying an overpayment should continue to make repayments¹. For those who have already settled an overpayment, a full or partial refund can still be made if eligible¹.

Carer's Allowance is worth £86.45 per week from April 2026/27¹. The earnings limit is £204 per week from April 2026/27 after allowable deductions¹.

Why it matters for households

Carers who claimed Carer's Allowance while working and whose earnings fluctuated may have been overpaid because the DWP did not average those earnings as the law required¹. Those affected are likely to be contacted directly by the DWP, and the reassessment applies whether or not the person is still caring¹.

Where an overpayment is found to have arisen from this error, money already repaid could be refunded and the debt reduced or written off¹. The DWP has said it will not seek additional money if the reassessment reveals a higher overpayment than originally calculated¹. Carers who have already repaid their debts will still be able to have their cases reassessed¹.

The reassessment covers a relatively small number of cases¹. It is separate from challenging an overpayment decision through a mandatory reconsideration, where strict time limits normally apply¹. Not all overpayments are affected; only those involving earnings-related overpayments where averaging was not carried out¹.

For anyone dealing with an overpayment more generally, the DWP can consider temporary suspension of recovery, a reduction in the recovery rate, or in very limited cases, write-off of the debt¹. Where someone misunderstood, forgot or was unaware of their duty to report a change, they will be asked to repay over time and may receive a civil penalty, which is different from acting fraudulently¹. More detail on benefit overpayments and deductions is available.

What happens next

The DWP reassessment exercise began on 13 April 2026 and will take up to three years to complete¹. Details on the best way for carers who have already repaid their debts to have their cases reassessed will be set out in due course¹. The DWP has said most carers will be notified if affected¹.