The Department for Work and Pensions has issued a warning to people on Carer’s Allowance – just weeks ahead of a rise on the earnings threshold for the benefit

The Department for Work and Pensions (DWP) has acknowledged the significant role unpaid carers play in assisting society’s most vulnerable individuals, stating it is “determined” to offer them the support they “need and deserve”. But, despite the upcoming increase in the earnings threshold for carers, officials are also reminding benefit claimants of their responsibility to notify them, or face owing the DWP money.

Minister for Transformation Andrew Western cautioned that those receiving 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 a written response to DUP MP Jim Shannon, the DWP Minister confirmed that out of the 143,922 unpaid carers with an outstanding benefit debt, approximately 99,349 are due to overpayments resulting from earnings exceeding the current £151 weekly income threshold – this accounts for 60 per cent of all Carer’s Allowance debt.

Responding to Mr Shannon’s query about the number of unpaid carers who have been overpaid across the UK, Mr Western stated: “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.”

He added: “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’s Allowance.”

Individuals claiming benefits have a duty to guarantee their eligibility and to notify the DWP of any changes in their situation that may affect their award, reports the Daily Record.

“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.”

An independent examination into overpayments of Carer’s Allowance when earnings have gone over the entitlement limit has already started. The investigation will look at overpayments of Carer’s Allowance in connection with earnings, how the DWP can best accommodate individuals who have accumulated them, and how to reduce the possibility of these issues occurring later on.

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.”

Addressing the matter of overpayments directly, the DWP Minister remarked: “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.”