Anna Dixon MP welcomes news thousands of unpaid carers are set to have debts cut or cancelled

Anna Dixon MP has today strongly welcomed the news that tens of thousands of unpaid carers affected by confusing guidance on their earnings are set to have their debts reduced, cancelled, or refunded, as part of a major reassessment of cases launched by the government.

The Shipley MP, who is also the Chair of the All-Party Parliamentary Group on Carers, said the move would begin the process of “rectifying past injustices”, following government ministers’ acceptance of 38 of the 40 recommendations made by the independent Sayce Review into Carer’s Allowance overpayments in November 2025.

Carer's Allowance is granted if you care for someone for at least 35 hours a week and they receive specific benefits, like Personal Independence Payment. However, some individuals were required to repay thousands of pounds to the Department for Work and Pensions (DWP) after unknowingly crossing a “cliff edge”, leading to severe debt.

The government estimates that over 200,000 Carer’s Allowance cases affected by confusing guidance will be reviewed, with debts potentially reduced, cancelled or refunded for around 25,000 unpaid carers.

Speaking following the announcement, Anna Dixon MP said: It is a huge step for carers that the government has started the reassessment process for Carer’s Allowance overpayments.

“This marks the beginning of rectifying past injustices in which hardworking, unpaid family carers were penalised by the DWP for being overpaid through no fault of their own. The accumulated debts that accumulated caused great anxiety for many carers. I have consistently raised these issues in parliament, both as Chair of the APPG Carers and as a member of the Public Accounts Committee.

“I will keep working hard to ensure the government implements the other recommendations of the Independent Review chaired by Liz Sayce and to advocate for further reforms to Carer’s Allowance as we mark 50 years since it was first introduced by a Labour government.”

The news coincides with 2026 being the 50th anniversary of the introduction of Carer’s Allowance, and comes after the Labour Government took steps to enhance support for carers, including increasing the weekly Carer’s Allowance earnings limit by a record amount in April 2025, and increasing again to £204 net per week for 2026/27.

The DWP will now begin reviewing the over 200,000 cases. Carers do not need to contact DWP; the department will get in touch if it needs anything further.