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DWP to Demand Repayments from Thousands of Unpaid Carers During Overhaul

Thousands of unpaid carers are facing repayment demands from the Department for Work and Pensions (DWP) as part of an ongoing overhaul of Carer’s Allowance. Although tens of thousands of carers affected by confusing guidance on earnings will have their debts reduced, cancelled, or refunded, many others will continue to be subjected to significant and potentially unjust repayment demands.

The government has confirmed that its current overpayment recovery policies will remain in place until a comprehensive reform of the benefit is complete. This means penalties will continue to be imposed, raising concerns about how ministers plan to compensate those unfairly affected.

Critics have compared the situation to the Post Office scandal, highlighting the severity of the issue. Disability rights expert Liz Sayce commented, “I’m pleased the DWP is moving forward with reassessments. This progress reflects the tireless efforts of carers and the attention brought by the Guardian’s reporting.”

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Kirsty McHugh, chief executive of the Carers Trust, welcomed the government’s commitment to reassessment and rectifying past mistakes. She noted, “This will significantly impact thousands of unpaid carers who were penalised through no fault of their own. The government’s acceptance of most recommendations from the Sayce Review and the £75 million allocated in last year’s Budget demonstrate a serious effort to address these injustices.”

McHugh also expressed gratitude to Liz Sayce and local carer services for their contributions to the thoroughness of the review, adding that Carers Trust will support its extensive network of local services through the reassessment process.

Helen Walker, policy lead at Carers UK, praised the government’s decisive steps but emphasized ongoing challenges. “The reassessment process is an important move toward addressing systemic failures. Our campaigning over the past seven years has uncovered the severe financial and emotional hardships faced by carers due to overpayments,” Walker explained.

Marking the 50th anniversary of Carer’s Allowance, Walker remarked that further reforms are necessary to ensure the benefit properly supports unpaid carers, recognising their contributions and protecting them from undue financial strain.

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