The Department for Work and Pensions (DWP) is set to review approximately 200,000 Carer’s Allowance claims following widespread criticism over how benefit debts have unfairly burdened carers.
Carer’s Allowance offers £83.30 per week to individuals caring for a loved one for at least 35 hours weekly, provided their earnings do not exceed £196 per week. However, if a carer’s income exceeds this threshold by even a penny, the entire weekly allowance must be repaid. This rigid policy has led to thousands of carers being penalised for marginal overpayments.
As a result, hundreds of thousands of carers have unknowingly accumulated significant debts, which the DWP often seeks to reclaim years later. In some cases, carers have faced the threat of criminal prosecution for failing to repay these debts, generating widespread distress and financial hardship.
In response, the Labour government has pledged to address these injustices by initiating a large-scale reassessment of historical cases to rectify errors and prevent further harm.
Professor Sue Yeandle, former director of the Centre for Care at the University of Sheffield, described the consequences of the DWP’s failures as placing “intolerable strain” on vulnerable families. She called for the government and DWP to issue an unreserved apology and consider compensation for those affected, highlighting that many carers were unaware of their accumulating debts until years later.
Campaigners like Katy Styles from the We Care Campaign emphasised that these systemic failings have very real impacts, translating into stress and financial insecurity for carers. She stressed the need for the DWP to genuinely listen to carers and protect them from further injustices.
Styles urged ministers to evaluate whether the department can reform its own culture or if decisive political leadership is essential to enforce the necessary changes. The ongoing crisis underscores the urgent need for compassionate leadership to restore trust and support for those who provide vital unpaid care to loved ones.