Government must go further with review of Carer’s Allowance, charity says

The Secretary of State for Work and Pensions, Liz Kendall, has announced that the government will launch an independent review into Carer’s Allowance overpayments.

While carers charities have welcomed the review, Carers Trust says the government must go one step further and review and reform the “archaic and unfair” Carer’s Allowance system as a whole.

135,000 carers thought to be affected by overpayments scandal

Led by Liz Sayce OBE, the former Disability Rights UK Chief Executive, the independent review will investigate the reasons why overpayments have occurred for some carers and discuss operational changes to minimise future overpayment risk.

The review has been launched following increasing reports of carers unknowingly accruing large amounts of overpayments of Carer’s Allowance. Indeed, an investigation by The Guardian found that tens of thousands of vulnerable carers were ordered to repay large sums of money, with some even threatened with criminal prosecution.

In a report published earlier this year, Carers UK found that nearly 135,000 unpaid carers have been affected by overpayments, rising from 80,000 in 2019. The value the DWP are seeking to recover has also increased from £150m in 2019 to £251m in 2023.

Carers UK says these overpayments are having a devastating impact on many carers, causing additional stress and anxiety when many are already under huge pressure and in precarious financial positions.

Carers should be supported to pursue paid work alongside caring role

Helen Walker, Chief Executive of Carers UK says the review not only needs to tackle the root cause of overpayments, but it must also assess the impact that the current design of Carer’s Allowance has on carers’ ability to combine paid work with unpaid care.

“The low earnings limit for Carer’s Allowance, combined with a harsh ‘cliff’ edge’ for those who go over the limit by just a few pence is hurting employment opportunities – holding some carers back from working as much as they would like to and pushing others out of employment altogether. Carers have told us about the stress of trying to keep their earnings just below that line and how they end up with overpayment debts despite their best efforts.

“We should be supporting and encouraging as many carers as possible to continue with their paid work alongside their caring role, where they are able to combine the two. Doing so would not only be good for carers and their finances, but also better for the wider economy and the Government’s ambition to increase employment levels.

“As well as raising the earnings limit to 21 hours at National Living Wage and removing the ‘cliff edge’ in the earnings limit, we need to also see wider reform and a review of Carer’s Allowance, to ensure it better supports unpaid carers,” Walker said.

Carer’s Allowance is the lowest benefit of its kind

Carers Trust’s CEO, Kirsty McHugh, has made similar calls, saying while the review is “hugely welcome”, the government must also take this opportunity to update the Carer’s Allowance system so that it reflects the current needs of carers.

She said: “Too many people have had their lives ruined by being pursued for huge sums of money simply because they made an honest mistake. These fines need to be written off and the systems allowing them to build-up must be overhauled.

“The Government should also take this opportunity to review and reform the archaic and unfair Carer’s Allowance system as a whole. Created in the 1970s, it’s just not fit for purpose today. It is the lowest benefit of its kind at an insultingly low £81.90 a week, its strict eligibility criteria prevent people balancing caring with work, and it locks young adult carers in full-time education out of support.”

Lauren Nicolle

Lauren is a qualified journalist who writes primarily across the health and social care sectors. She is passionate about exposing the injustices faced by people with a learning disability, with a particular focus on equal access to healthcare.

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