Carers UK has described a “landmark day for the carers’ movement” after the Government responded to the findings of an independent review into historic overpayments of Carer’s Allowance. The measures come after years of campaigning by Carers UK and signal a major shift in how thousands of unpaid carers may be treated going forward.
Under the new commitments, the Government will reassess Carer’s Allowance overpayment cases dating back to 2015. Where averaging of earnings payments could have been lower, Government will repay or write off debt, including where money has been repaid in full.
The announcement marks a significant step toward correcting longstanding administrative failures that left many carers burdened with unexpected debts, emotional distress and severe financial hardship.
The scandal of overpayments shocked many people last year when it was widely reported in the media, but it has been going on for a long time. Many unpaid carers had been unknowingly building up huge debts, often as a result of going over the earnings limit for Carer’s Allowance by as little as a few pence per week. As a result, they lost all of their allowance and owed the Department for Work and Pensions (DWP) hundreds and thousands of pounds. The huge overpayment debts were not built up overnight, in these cases it took the Department for Work and Pensions years to inform the carer that their earnings were over the limit.
Carers UK has campaigned on the issue since 2018, consistently highlighting the complexity of the Carer’s Allowance earnings threshold and the disproportionate penalties many carers faced due to administrative errors or unclear guidance.
Responding to the recent news, Helen Walker, Chief Executive of Carers UK, said
"It’s absolutely right that the Government has taken the bold move of owning up to the mistakes of the DWP, which it largely inherited from the last Government.
"Liz Sayce OBE, who led the Independent Review, has really listened to us and to unpaid carers, and delivered an incredibly detailed report.
"We also want to pay tribute to the work that the Guardian and other media outlets have done in bringing this issue to public attention.
A step towards rebuilding trust
Helen goes on to say:
"Of course there will be an immense amount of detail to look through and digest, but we are hopeful that this can be the start of rebuilding carers’ trust in the system and that this is a positive indication that the door is open for further change - including longer-term reforms for Carer’s Allowance to ensure it better supports unpaid carers who balance paid work alongside their caring responsibilities."
You can read the full Independent Review report and the Government's response here Review of Carer’s Allowance Overpayments - GOV.UK
