Carers getting DWP benefit urged to update details ahead of earnings increase

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The Department for Work and Pensions has issued a warning to those in receipt of Carer’s Allowance

People claiming Carer’s Allowance who exceed the weekly earnings threshold are asked to pay the money back to the DWP

The Department for Work and Pensions (DWP) has acknowledged the integral role of unpaid carers in aiding vulnerable members of the community, expressing it is “determined” to give them the backing they “need and deserve”. However, officials are also cautioning Carer’s Allowance claimants that they still need to notify them or face owing money to the DWP.

Minister for Transformation Andrew Western also cautioned that those on Carer’s Allowance must fulfil their “responsibility to ensure they are entitled to benefits they claim and to inform the DWP of any changes in their circumstances that could impact their award”.

Addressing DUP MP Jim Shannon’s query regarding overpayments among unpaid carers in the UK, Mr Western revealed in his written response: “This Government recognises and values the vital contribution made by carers in supporting some of the most vulnerable in society, including pensioners and disabled people. We are determined to provide unpaid carers with the support they need and deserve.”

He further announced a significant increase in the Carer’s Allowance earnings limit slated for April 2025, raising the bar by £45 per week to £196, which would positively affect over 60,000 carers by 2029/30 – marking “From April 2025, the Government is 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.

A younger woman is comforting an elderly woman
Nearly 100,000 unpaid carers across the UK owe the DWP money due to earning too much money in one week(Image: Getty Images )

He added: “Claimants have a responsibility to ensure they are entitled to benefits they claim and to inform the DWP of any changes in their circumstances that could impact their award.

“We understand that providing care can be a demanding role, which is why we are trialling new ways of communicating with customers to support them in fully understanding their responsibilities to report changes in their circumstances, such as employment, including through a trial of text message reminders.”

The DWP Minister also mentioned that an independent review into the issue of overpayments of Carer’s Allowance where earnings have exceeded the entitlement threshold has begun, reports the Daily Record. This review will look into how these overpayments related to earnings have happened, how the DWP can better support those affected, and how to prevent similar issues in the future.

He stated: “We expect review findings and recommendations to be submitted to the Department in early summer 2025. Liz Sayce OBE, the Independent Reviewer, is keen to hear from interested parties.”

Addressing the matter of overpayments directly, the DWP Minister added: “Where overpayments do occur, the Department has a duty to the taxpayer to protect public funds and to ask for money to be paid back. We remain committed to working with anyone who is struggling with their repayment terms and will always look to negotiate sustainable and affordable repayment plans.”

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