You may have seen on the news that the government today 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. Carers Trust have produced these FAQs based on a document produced by DWP. We will keep you up to date as we get any news.
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. 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 will begin on 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 understands that overpayments have caused worry and stress for some people, and DWP is 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 DWP 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.
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 today (13 April 2026), and more details will be shared on GOV.UK (the DWP webspage) 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.
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.
We will keep you up to date and put future details on our website so please keep an eye out for links to that information in our newsletters.
