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Carer’s Allowance Overpayments
14 April 2026
Lead MP
Anna Dixon
Shipley
Lab
Responding Minister
Stephen Timms
Tags
Social CareTaxationEmploymentBenefits & Welfare
Word Count: 4016
Other Contributors: 2
At a Glance
Anna Dixon raised concerns about carer’s allowance overpayments in Westminster Hall. A government minister responded.
Key Requests to Government:
Dixon urged the Government to implement Liz Sayce's reco [4D [K recommendations urgently, set a timeline for reforms, introduce a taper sys [3D [K system to address earnings limits, and ensure all aspects of maladministrat [14D [K maladministration are addressed in the audit of over 200,000 cases.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Anna Dixon highlighted the Carer's Allowance overpay [7D [K overpayment scandal impacting thousands of carers, including Helen who face [4D [K faced a £2,000 debt due to DWP errors. She cited statistics such as 1.2 mil [3D [K million unpaid carers living in poverty and 5.8 million unpaid carers contr [5D [K contributing £184 billion annually to the UK economy.
Jim Shannon
DUP
Strangford
The Member commends the hon. Lady for bringing forwa [5D [K forward the debate and highlights that the amount of money saved by the Gov [3D [K Government from overclaimed Carer's Allowance is astronomical. He stresses [K the need for discretion when dealing with carers who made unintentional err [3D [K errors, arguing against treating them as criminals.
Rushanara Ali
Lab
Bethnal Green and Stepney
The Member congratulates her hon. Friend on securing [8D [K securing the debate and notes the £184 billion annual contribution of carer [5D [K carers to the country. She draws parallels between this situation and past [K scandals, urging for regular audits by the Department for Work and Pensions [8D [K Pensions to monitor its progress in addressing overpayments. She referred to a Guardian article which stated that [4D [K that the government would maintain its existing policies for overpayment re [2D [K recovery during an overhaul of Carer's Allowance, ensuring penalties contin [6D [K continue. She asked the Minister to confirm whether these penalties will no [2D [K not be imposed.
Government Response
Stephen Timms
Government Response
I am delighted to serve under the chairmanship and [K congratulate my hon. Friend on securing this timely debate. The Government [K have inherited a challenging situation where carers faced unexpected debts [K due to overpayments of Carer's Allowance. We increased the weekly earnings [K limit in April 2025, resulting in the largest ever increase, allowing more [K than 60,000 additional people to receive allowance from 2025-26 to 2029-30. [8D [K 2029-30. This change also reduces the chance of inadvertently slipping abov [4D [K above the limit due to national living wage increases. Independent review l [1D [K led by Liz Sayce identified issues with flawed guidance on earnings averagi [7D [K averaging and we have revised this, setting aside £75 million for refunds o [1D [K over three years starting from September 2025. The reassessment exercise be [2D [K began yesterday, aiming to complete it in two years but allowing three year [4D [K years to ensure thoroughness. We expect to review more than 200,000 cases, [K reducing, cancelling or refunding debts for approximately 25,000 carers. Ne [2D [K New and correct guidance is now in place since September 2025. The Governme [8D [K Government have appointed a senior responsible officer to oversee the deliv [5D [K delivery of the recommendations with updates every six months to the Public [6D [K Public Accounts Committee and Work and Pensions Committee. We are improving [9D [K improving communication and clarity for carers on earnings averaging, overp [5D [K overpayments, and reporting responsibilities. We aim to reduce the impact o [1D [K of the earnings cliff edge through research and behavioural analysis. We wi [2D [K will put in place an automated solution to better join-up Carer's Allowance [9D [K Allowance with Universal Credit and other benefits, reducing burdens on car [3D [K carers. Backlogs are being addressed by faster processing of HMRC alerts. T [1D [K The reassessment exercise is part of our broader response to fix problems a [1D [K and correct mistakes, rebuilding trust through honesty, accountability, and [3D [K and action.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.