Unpaid carers in the UK, who were wrongly asked to repay thousands of pounds in benefits due to unlawful changes in the rules, may have to wait years before finding out if they will get their money back, according to campaigners. The Department for Work and Pensions (DWP) is currently reviewing 200,000 cases where carers received overpayments—money they were not entitled to—due to errors in the system. Around 25,000 carers may eventually be eligible for full or partial refunds. However, after several months of reassessment, only a small number of cases have been processed. At the current pace, charities warn that the process could take until 2054 to finish.
Campaigners are worried that the slow progress could leave some unpaid carers in severe distress. If the reassessment continues at the same rate, some carers may pass away or become difficult to contact before they receive any resolution. This reassessment was initiated after a government review found that the DWP had made widespread mistakes, leading many carers to accumulate debts as high as £20,000 through no fault of their own. The review was sparked by a Guardian investigation that exposed years of mismanagement and neglect, leaving many unpaid carers in financial and emotional hardship.
Despite promises from ministers in December 2024 to resolve the issue, concerns remain about the DWP’s progress and willingness to change. Although the department has hired more staff and taken steps to prevent overpayments, more than 30,000 additional overpayments were made in 2025-26, including 78 cases involving over £20,000. Official figures from last year showed that 144,000 carers were still repaying debts from overpayments made over several years. Earlier this year, there was outrage when the DWP imposed penalties on 1,400 carers based on flawed and discredited guidance, even though officials knew the decisions were incorrect.
The reassessment, which began in April, is focusing on cases where the DWP failed to follow the law by not allowing carers with irregular incomes from part-time work to average their earnings over a year. This left them vulnerable to penalties for exceeding earnings limits. A recent statement from welfare minister Stephen Timms said that 3,000 cases had been reviewed so far, and the DWP is on track to complete the reassessment within the planned timeframe. However, Carers UK, a leading charity, expressed concern that only 1.5% of the total cases had been processed, and at the current rate, the reassessment could take 27 years to complete. It remains unclear whether any carers have received refunds yet.
Emily Holzhausen, director of policy and public affairs at Carers UK, emphasized the urgency of the situation, stating that carers have been waiting for years—some for over a decade—for a resolution. She warned that the prolonged reassessment process adds to the uncertainty and stress already faced by these individuals. A DWP spokesperson reiterated that the department is on track to complete the reassessment within three years, adding that they are continuing to recruit and train new staff to ensure accuracy in the process.
DWP Overpayment Reassessment Faces Delays, Concerns Over Carers' Financial Hardship
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