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Review of unpaid carer debts announced after damning report

The Department for Work and Pensions will reassess 185,000 cases after a review found inconsistent guidance caused historic debts and penalties for unpaid carers.

  • The Department for Work and Pensions will reassess 185,000 Carer's Allowance cases in England and Wales starting Tuesday and may cancel or repay historic debts.
  • Liz Sayce's year-long review found the 2015–summer 2025 Carer's Allowance guidance was `unclear` and `ill-defined`, preventing many carers from properly reporting earnings.
  • Carer's Allowance pays £83.30 a week, the earnings threshold rose to £196 a week from April this year, and a £50 penalty applies for undeclared earnings, affecting carers earning £151 or less.
  • After accepting most recommendations, the UK Government pledged to put right failures, while Carers UK chief executive Helen Walker said it is "righting a clear wrong" and "the start of rebuilding carers' trust," Ms Walker added.
  • Reclassifying overpayments and modernising processes, the report says, would help carers balance paid work and caring by addressing UC arrears and the `cliff-edge` rule.
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GOV.UK broke the news in United Kingdom on Tuesday, November 25, 2025.
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