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The Independent Review of Carer’s Allowance took its next step to supporting unpaid carers by yesterday [Monday 9 December] publishing its terms of reference.

• Review terms of reference published marks an important next step to help unpaid carers across the country
• An independent review to investigate earnings related Carer’s Allowance overpayments was announced in mid-October
• Publication of Terms of Reference follows changes to the earnings threshold announced in the Budget which will benefit more than 60,000 carers by 2029/30

The review – announced by Work and Pensions Secretary Liz Kendall earlier this year and led by Liz Sayce OBE - was established to investigate the reasons why overpayments have occurred for some carers as part of our mission to rebuild Britain and support working people.

It follows concerns over reports of carers unknowingly accruing large amounts of overpayments of Carer’s Allowance, signalling the Government’s commitment to learn lessons and get to grips with the issues.

Now the scale and scope of the review has been confirmed with the publication of its terms of reference. It will explore:

• How overpayments of Carer’s Allowance linked to earnings accrued and why this has happened
• What changes can be made to reduce the risk of such overpayments accruing in future
• What DWP can best do to support those who have already accrued overpayments

Minister for Social Security and Disability, Sir Stephen Timms MP, yesterday said:

Carers wishing to pursue more financial independence should be encouraged to do so and not be unknowingly punished.

We need to get to the bottom of what has been going on. Publication of the terms of reference is the next step in this important work. The Review also builds on the action we’ve already taken to boost the earnings threshold which will benefit more than 60,000 carers.

The review is expected to deliver its findings and recommendations to ministers by Summer 2025.

Chair of the independent review, Liz Sayce OBE, yesterday said:

I’m pleased my important work on this review is now starting in earnest. I have already started to hear from carers about the impact overpayments have had on them, in a context in which people face multiple pressures in their lives. I will be collecting views and evidence as I review the issues and develop recommendations. In doing so, I will be able to advise the Government on ways to minimise overpayments of Carer’s Allowance related to earnings accruing in future and how it can best support those already affected.

Action has already been taken by the Government by 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.

Additional Information:

• The Terms of Reference of the review can be found here: Independent Review of Carer’s Allowance overpayments: Terms of Reference – GOV.UK
• Currently, to be eligible for Carer’s Allowance, a carer must earn £151 a week or less after allowable deductions. If they exceed this earnings limit, they have a duty to inform DWP so that their entitlement can be reviewed.
• The Review was announced earlier this year: Government to launch independent review into Carer’s Allowance overpayments – GOV.UK