Inaccurate operational guidance has led the Department to incorrectly assess around 26,000 carers as having been overpaid Carer’s Allowance. The main cause of Carer’s Allowance overpayments is claimants having earnings which exceed the permitted limit. The Independent Review of Carer’s Allowance Overpayments, which was published in November 2025, found that the prevalence of earnings- related overpayments had been caused by systemic issues that prevented carers from fulfilling their responsibility to report information about their circumstances. This included the Department having operational guidance that was inconsistent with the governing regulations and that did not allow staff discretion to average fluctuating earnings where claimants had an irregular earnings pattern. The Department estimates that, over the past 10 years, about 26,000 people were incorrectly recorded as having been overpaid Carer’s Allowance as a result. It has committed to put this right and believes it will take around two years to identify all those affected, with 200,000 cases reviewed in the process. A lack of integrated, concerted leadership from the Department allowed this issue to persist, and it must now work quickly to provide redress to the people affected. recommendation Within six months, DWP should write to update the Committee on its progress with identifying and resolving the cases of carers affected by its inaccurate guidance. 6 1 Levels of fraud and error Introduction