TENS of thousands of unpaid carers are to have their debts cut or cancelled in a much needed review of historic overpayments following campaigner efforts.

Some 200,000 people who were left owing money because of “confusing” earnings guidance will have their cases looked at again, the Department for Work & Pensions said.

The government estimates that of these, about 25,000 carers will have their debts cancelled or reduced, or receive refunds where they have already repaid money.

The issue of people being penalised for going over their earnings limit for carer’s allowance, even by as little as a few pence per week, was branded a “scandal” by campaigners.

November’s independent review led by former charity boss Liz Sayce concluded that many carers felt they were “treated as criminals, with resulting feelings of fear and shame.”

Ministers accepted 38 out of 40 recommendations in the report, which found that between 2015 and summer 2025, carer’s allowance guidance was “ill-defined” and “systemic flaws” prevented many from properly reporting their earnings.

Carer’s allowance, which is £86.45 weekly, is paid to someone who spends at least 35 hours a week regularly caring for someone with an illness or disability.

Carers UK chief executive Helen Walker said hundreds of carers had suffered severe financial strain and emotional distress because of the overpayments and that further reform was sorely needed.

“The reassessment process marks an important step in tackling these systemic failures,” she said. “As we mark the 50th anniversary of carer’s allowance this week, it is encouraging to hear that the government is also exploring further options for reform.”

Carers Trust chief executive Kirsty McHugh said the reassessment would have a huge impact on carers, “who were penalised for no fault of their own.”