As reported by The Guardian, a new review concluded that Tory ministers and senior welfare officials repeatedly failed, leaving hundreds of thousands of unpaid carers in debt and wasting millions of pounds of public money.
What did a review reveal about DWP and carer overpayments?
An independent report shows major systemic failures at the Department for Work and Pensions, saying carers cannot be blamed for errors caused by unclear and confusing benefit rules.
The review follows a Guardian investigation showing carers faced harsh penalties of up to £20,000 for accidental overpayments of carer’s allowance.
The government launched a review for unpaid carers hit by overpayments, promising debt relief in many cases, calling the scandal a “mess inherited from the previous government.”
The review faced backlash from carers, who said it failed to recommend compensation for those whose health and lives were severely affected by unexpected overpayments.
According to the report, carers experienced stress and shame, with DWP staff actions
“made them feel degraded, like a criminal or cheat trying to game the system.”
The independent review finds the “cliff edge” rules caused carers to quickly accumulate large overpayments.
Unpaid carers working 35+ hours weekly claim £83.30 allowance, but exceeding £196, even by 1p, triggers repayment of the full amount.
Under the “cliff edge” rule, exceeding the £196 weekly limit by 1p can force carers to repay £4,332 plus a £50 penalty.
Senior officials and former ministers face backlash for failing to address overpayment issues.
The review stated,
“The … DWP has failed to demonstrate the ministerial and senior focus needed to resolve these persistent injustices and reform carer’s allowance to implement its core purposes in the modern world.”
The report flagged DWP’s 2020 changes, allowing carers to average part-time earnings to avoid overpayments, calling them ineffective and unclear.
According to the review, DWP’s complex reporting rules left carers unsure what earnings to declare.
What did Liz Sayce say about carers’ allowance failures and overpayments?
Liz Sayce, disability rights advocate and review author, warned that carers’ allowance flaws caused injustice, wasted public funds, and harmed carers’ health, finances, and careers. She criticized top DWP officials for a decade of inaction.
She wrote,
“Overpayments over many years at this scale and impact, with missed opportunities to resolve them, are entirely unacceptable. They are an inappropriate use of taxpayers’ money, which has involved using public money for a purpose not intended, and then incurring further cost to attempt to recover it.”
Ms Sayce added,
“The prevalence of overpayment related to earnings has been caused not by widespread individual error by carers in reporting their earnings but by systemic issues preventing them from fulfilling their responsibility to report.”
The review author wrote in the report that,
“This shame is experienced as the polar opposite of the recognition carer’s allowance aims to offer to unpaid carers who are regularly described by the government as ‘unsung heroes’.”
Ms Sayce referenced an unpaid carer to the review, describing the struggle to navigate the system as “like playing a game where only one side knows the rules.”
She praised carers, charities, DWP whistleblowers, and journalists for their invaluable role in exposing the scandal and bringing it onto the political agenda.
Ms Sayce added,
“I hope this report will lead to concerted, accountable action to resolve the persistent – and repeatedly reported – problem of overpayment of carer’s allowance.”
What did Ed Davey say about suspending carer penalties?
Last month, Liberal Democrat leader Ed Davey urged suspension of carer penalties until the government reforms the flawed allowance system.
He said,
“It cannot be right that the government is still hounding carers for repayments, long after this scandal was exposed and even after we secured an independent review, but before anything has been done to put things right.”
Mr Davey added,
“The government needs to pause repayments now, publish the review’s findings without further delay, and get on with fixing the system so it actually works for carers.”
The Lib Dems leader stated,
“I really hope the government will give the victims of this appalling scandal the compensation they deserve. It would be a milestone for carers across the country, and a victory for all those who have campaigned tirelessly for justice.”
Mr Davey continued,
“The government has a chance here not just to compensate the victims, but to overhaul carer’s allowance so it properly supports carers and doesn’t punish them for working. We will keep pushing ministers to seize that chance.”
How much are carers paid in the UK?
In the UK, “carer” can refer to unpaid carers claiming government benefits or paid care workers employed in the social care sector.
Unpaid carers receive £83.30 per week for providing at least 35 hours of care, must earn no more than £196 per week, and the person they care for must receive a disability benefit.
Paid care workers earn an average of £11.72 per hour as Support Workers, £10.04 per hour as Personal Support Workers, and £13.55 per hour as Care Workers.
