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05/06/2026 1 min read

Carer's Allowance overpayments: what every parent carer should check

Following the National Audit Office report and continued media coverage, DWP has set out new processes for handling Carer's Allowance overpayments. If you claim Carer's Allowance, it's worth a quick check of your earnings against the weekly limit.

## The issue Thousands of unpaid carers have been hit with large overpayment demands — often after small breaches of the weekly earnings limit went undetected by DWP for years. ## What's changing - DWP is investing in better real-time checks against HMRC earnings data. - New guidance encourages earlier contact with carers who edge over the limit, rather than letting debts build. - Some historic overpayments are being reviewed where DWP error contributed. ## What to do as a parent carer - Check the current Carer's Allowance weekly earnings limit on GOV.UK before taking on extra hours. - Remember allowable deductions (pension contributions, some childcare and care costs) can reduce assessable earnings. - Report any change in circumstances in writing and keep a copy. - If you receive an overpayment letter, **don't panic and don't ignore it** — get advice from Citizens Advice or Carers UK before responding. **Source:** DWP guidance on Carer's Allowance; National Audit Office report on Carer's Allowance overpayments.
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