The Department for Work and Pensions (DWP) is under fire for issuing repayment demands of up to £2,145 to UK households—particularly carers—who unknowingly breached the rules of Carer’s Allowance.
One such case, involving 22-year-old Rose Jones, has sparked nationwide concern after she was ordered to repay benefits despite receiving incorrect guidance from a DWP work coach.
This growing issue has raised serious questions about DWP communication, internal systems, and the treatment of unpaid carers—many of whom live in vulnerable financial circumstances.
What Happened: The Case of Rose Jones
Rose Jones began caring for her disabled mother at the age of eight. As a young adult, she enrolled in the Kickstart job scheme, approved and overseen by DWP. She consistently informed her job coach that she was receiving Carer’s Allowance, and confirmed her earnings with them multiple times.
Despite receiving verbal assurance that her benefits would not be impacted, Rose received a shocking letter on her 20th birthday demanding she repay £2,145 in alleged overpayments.
“It was terrifying. I had done everything I could to check I was doing the right thing,” said Rose.
This situation is not isolated, and many other unpaid carers have experienced similar treatment due to system flaws, miscommunication, or unclear policies.
Why Are Carers Being Asked to Repay Money?
The issue stems from earnings thresholds attached to Carer’s Allowance. If a carer earns over a certain amount—currently £151 per week (2025 rate)—even by a few pounds, they become ineligible for the allowance that week.
However, due to:
- Miscommunication from DWP staff
- Outdated systems that fail to cross-check earnings
- Lack of real-time alerts
many carers continue receiving payments unknowingly in breach of the rules.
Carer’s Allowance Overpayment – Facts and Figures
| Detail | Amount / Info |
|---|---|
| Weekly Earnings Limit (2025) | £151/week |
| Weekly Carer’s Allowance Rate | £81.90/week |
| Typical Overpayment Demand | £2,145 or more |
| DWP Overpayment Recovery Rate (2025) | Improved, but still under review |
| Independent Review Status | Ongoing, launched in 2025 by the government |
What Is the DWP Doing About It?
Amid public pressure, the DWP has:
- Launched an independent review of Carer’s Allowance overpayments
- Hired more staff to assess 100% of overpayment alerts
- Pledged better integration between payment and earnings systems
- Admitted that internal systems sometimes fail to prevent ongoing overpayments
A DWP spokesperson stated:
“We understand the huge difference carers make and we’re committed to improving the process to ensure fairness.”
How to Protect Yourself from Carer’s Allowance Overpayments
If you’re receiving Carer’s Allowance and working:
- Track your earnings weekly, especially if paid hourly or irregularly
- Report any changes to income immediately via your Universal Credit journal or the DWP helpline
- Request written confirmation of verbal advice from any DWP representative
- Regularly check your payment history and employment records
- Save copies of all communication with DWP for reference
Support for Affected Carers
If you’ve received an overpayment letter:
- Don’t panic. You have the right to appeal the decision
- Contact Carers UK or a welfare rights advisor
- Use the DWP’s mandatory reconsideration process
- Provide evidence of incorrect guidance or mitigating circumstances
Why This Issue Matters
There are over 1.3 million unpaid carers in the UK, many of whom provide 24/7 support to family members while living under financial strain. Most receive no formal training in benefit regulations, and the burden of a £2,145 debt—especially when caused by DWP errors or outdated systems—is seen by many as deeply unfair.
As Emily Holzhausen, Policy Director at Carers UK, put it:
“It’s devastating to see young carers punished for trusting the very people meant to guide them.”
The DWP’s recovery of £2,145 from unsuspecting carers highlights the urgent need for system reform, better communication, and genuine support for one of the UK’s most undervalued populations.
With an independent review underway and new staff being deployed to oversee alerts, there’s hope that fewer carers will fall through the cracks in the future.
If you’re a carer, stay vigilant, know your rights, and always double-check the rules—because mistakes can come with high emotional and financial costs.
FAQs
What is the current Carer’s Allowance earnings limit for 2025?
You can earn up to £151 per week after deductions. Exceeding this even once may result in repayment demands.
Can I appeal a DWP overpayment demand?
Yes, you can request a mandatory reconsideration and, if needed, escalate to an independent tribunal with supporting documents.
Is the DWP fixing the problem?
The DWP has started an independent review of how overpayments happen and is working to improve internal systems and staffing.