Carer’s Allowance Overpayments Reassessment Exercise: An explainer for Carers

14th April 2026

You may have seen news about a government review of Carer’s Allowance overpayments, which could feel worrying or unclear. This explainer from Carers Trust outlines what has been announced, why claims are being reassessed, and what this might mean for carers. It explains the key points in plain language and reassures carers that most people don’t need to do anything right now, as the Department for Work and Pensions will usually contact anyone affected directly.

On the 13 April, the Government announced that it will undertake a Carer’s Allowance Reassessment Exercise to review overpayments charged to carers, following an independent review.

We know this may cause some concern and confusion amongst carers. This page explains what we know and what you should do.

Remember, carers don’t need to do anything now. In most cases the Department will get in touch with people whose overpayments of Carer’s Allowance may be affected. There is more information on the DWP website.

What was the report about Carer’s Allowance Overpayments published in November 2025, and what did it say?
 

The Independent Review led by Liz Sayce OBE looked into why earnings‑related overpayments of Carer’s Allowance have happened, how carers affected by them can be better supported, and what can be done to stop similar issues in the future.

It found that the guidance being used by DWP between April 2015 and September 2025 wasn’t clear.

What is the reassessment exercise?

Because the review found that guidance on averaging fluctuating earnings between April 2015 and September 2025 wasn’t clear, DWP is putting in place steps to run a reassessment exercise.

DWP wants to reassure carers that the reassessment around the use of averaging earnings will only affect a very small number of cases.

This reassessment exercise will not result in carers owing DWP any more money.

You [carers] will be informed if DWP reviews your claim and there has been a change that reduces the outstanding debt or results in a refund of what you’ve already paid. Your earnings‑related overpayment will not increase through the reassessment exercise.

You don’t need to do anything now. The reassessment exercise began 13 April 2026. Further information will be available on GOV.UK shortly. In most cases, DWP will get in touch with people whose overpayments of Carer’s Allowance may be affected.

What action do affected claimants need to take now?
 

You don’t need to do anything right now. In most cases, DWP already has the information it needs to reassess your case. If DWP does need anything else from you, they’ll get in touch directly.

For some older cases, DWP may no longer hold all the information because of data protection rules (GDPR). If that applies to you, DWP will make a simple online form available so you can provide what’s needed. DWP aims to launch this in November 2026

Will DWP provide compensation for the stress they have caused, and will they pay interest on any overpayment refunds?
 

DWP say they understand that overpayments have caused worry and stress for some people, and are sorry that this has happened. That’s why DWP set up an Independent Review to look into the issue.

DWP doesn’t normally make special payments as part of correction exercises, and the Independent Review didn’t recommend offering compensation in these cases.

However, if you feel your case wasn’t handled properly, you can make a formal complaint to DWP and request compensation.

DWP also doesn’t charge interest on debts, and it won’t pay interest on any money that is refunded.

How do I go about appealing my overpayment?
 

DWP will share more information soon and update GOV.UK as this work progresses. You don’t need to contact the Department right now — in most cases, DWP will reach out directly to anyone whose Carer’s Allowance overpayment might be affected.

If you’re worried about a more recent overpayment, please check your notification letter. It explains the steps you can take if you want to ask for a mandatory reconsideration.

Will DWP still be recovering my existing overpayment?
 

The review doesn’t change DWP’s day‑to‑day work, and it doesn’t replace any legal processes already in place.

DWP won’t be pausing the recovery of overpayments. If money is still owed, DWP will work with carers to agree a repayment plan that feels manageable. Pausing repayments now could risk people building up even more debt, and DWP wants to help avoid that.

DWP has also found that the guidance on averaging fluctuating earnings between April 2015 and September 2025 wasn’t as clear as it should have been. Because of this, DWP is putting a reassessment exercise in place to help put things right.

DWP wants to reassure carers that this reassessment will only affect a very small number of cases.

You don’t need to do anything at the moment. The reassessment exercise began on 13 April 2026, and in most cases the Department will contact anyone whose Carer’s Allowance overpayments might be affected.

If you have an overpayment and want to talk about repayment options, DWP’s Debt Management Service is there to help. (Number on page 1)

When should I expect my refund?
 

The reassessment exercise began on 13 April 2026, and more information will be shared on GOV.UK as things progress.

DWP will let you know if your claim is reviewed and there’s a change that reduces what you owe or leads to a refund of money you’ve already paid. And don’t worry — this reassessment will not result in you owing DWP any more money.

You don’t need to do anything right now. In most cases, the Department will get in touch directly with anyone whose Carer’s Allowance overpayment might be affected.

What are DWP going to do about the penalty I wrongly received for my overpayment?

The reassessment exercise started on 13 April 2026, and more details will be shared on GOV.UK (the DWP webpages) soon.

DWP will let you know if your claim is reviewed. If, after reviewing your case again, an overpayment linked to averaged earnings is removed, the DWP will also remove and refund any penalty associated with that overpayment.

This doesn’t mean every penalty will be taken away. Some larger overpayments may still be correct, for example if they relate to other benefits.

If DWP finds that a penalty was issued in error, it will put that right.

You don’t need to do anything right now. In most cases, DWP will get in touch with anyone whose Carer’s Allowance overpayment might be affected.

I’ve repaid my debt, when will I hear about getting a refund?
 

The reassessment exercise began on 13 April 2026, and more information is on GOV.UK (LINK TBC).

DWP will let you know if your claim is reviewed and there’s a change that reduces what you owe or leads to a refund of anything you’ve already paid. Don’t worry — this reassessment won’t increase your overpayment.

Looking at your case again will not result in you owing DWP more money.

You don’t need to do anything right now. In most cases, DWP will get in touch directly with people whose Carer’s Allowance overpayments might be affected.

What will DWP do if someone is due a refund for a CA earnings-related overpayment, but still has other overpayment debt with DWP?
 

If DWP owes you a refund after reassessing your case, they’ll use that money to help clear any other debt you might still have with them.

Will I still get paid as normal for my current claims?
 

Your benefit entitlements delivered by the DWP or Social Security Scotland will continue to be paid, and you will be informed if the DWP reassess your claim.  

You only need to contact the DWP or Social Security Scotland if your circumstances change, for example, as normal, you must contact them if you have a change of earnings, to avoid overpayments. 

I get Universal Credit. Does this impact my Universal Credit claim?
 

The review won’t affect your regular Universal Credit payments. If you get Carer’s Allowance, your benefits will continue as normal, and DWP will let you know if they need to look at your claim again.

You only need to get in touch with DWP if something in your circumstances changes. For example, as usual, it’s important to tell DWP if your earnings go up or down so you don’t end up with an overpayment.

Reassessing your case won’t make you owe the DWP any more money.

I receive Carer’s Allowance/Carer Support Payment. Does this impact my current claim?  

If you claim Carer’s Allowance or Carer Support Payment in Scotland, your benefit entitlements will continue to be paid, and you will be informed if the DWP review your claim.

You only need to contact the DWP or Social Security Scotland if your circumstances change, for example, as normal, you must contact them if you have a change of earnings, to avoid overpayments.