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• Review terms of reference published marks an important next step to help unpaid carers across the country

• An independent review to investigate earnings related Carer鈥檚 Allowance overpayments was announced in mid-October

• Publication of Terms of Reference follows changes to the earnings threshold announced in the Budget which will benefit more than 60,000 carers by 2029/30

The Independent Review of Carer鈥檚 Allowance takes its next step to supporting unpaid carers by publishing its terms of reference today [Monday 9 December].

The review - announced by Work and Pensions Secretary Liz Kendall earlier this year and led by Liz Sayce聽OBE - was established to investigate the reasons why overpayments have occurred for some carers as part of our mission to rebuild Britain and support working people.

It follows concerns over reports of carers unknowingly accruing large amounts of overpayments of Carer鈥檚 Allowance, signalling the Government鈥檚 commitment to learn lessons and get to grips with the issues.

Now the scale and scope of the review has been confirmed with the publication of its terms of reference. It will explore:

• How overpayments of Carer鈥檚 Allowance linked to earnings accrued and why this has happened

• What changes can be made to reduce the risk of such overpayments accruing in future

• What DWP can best do聽to support those who have already accrued overpayments

Minister for Social Security and Disability, Sir Stephen Timms MP, said:

Carers wishing to pursue more financial independence should be encouraged to do so and not be unknowingly punished.

We need to get to the bottom of what has been going on. Publication of the terms of reference is the next step in this important work. The Review聽also builds on the action we鈥檝e already taken to boost the earnings threshold which will benefit more than 60,000 carers.

The review is expected to deliver its findings and recommendations to ministers by Summer 2025.

Chair of the independent review, Liz Sayce OBE, said:

I鈥檓 pleased my important work on this review is now starting in earnest. I have already started to hear from carers about the impact overpayments have had on them, in a聽context in which people face multiple pressures in their lives. I will be collecting views and evidence as I review the issues and develop recommendations. In doing so, I will be able to advise the Government on ways to minimise overpayments of Carer鈥檚 Allowance related to earnings accruing in future and how it can best support those already affected.

Action has already been taken by the Government by boosting the Carer鈥檚 Allowance earnings threshold by 拢45 a week to 拢196, benefitting more than 60,000 carers by 2029/30. This is the biggest ever cash increase in the earnings threshold for Carer鈥檚 Allowance.

Additional Information:

• The Terms of Reference of the review can be found here: Independent Review of Carer鈥檚 Allowance overpayments: Terms of Reference - 188体育
• Currently, to be eligible for Carer鈥檚 Allowance, a carer must earn 拢151 a week or less after allowable deductions. If they exceed this earnings limit, they have a duty to inform聽DWP聽so that their entitlement can be reviewed.
• The Review was announced earlier this year: Government to launch independent review into Carer鈥檚 Allowance overpayments鈥� - 188体育