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Over the past six years, a staggering £357 million in Carer’s Allowance has been mistakenly paid out due to administrative failures, according to newly uncovered data by Carers UK. The overpayments were primarily caused by minor breaches of earnings limits that were flagged but not properly reviewed by the Department for Work and Pensions (DWP).
This failure led tens of thousands of carers to accumulate large debts, often without their knowledge. Carers UK called it an “unacceptable failure,” highlighting how the government’s inaction caused unnecessary financial stress for many.
Despite DWP’s claim that the current overpayment rate is the lowest on record, critics argue that the issue should have been addressed years ago. A DWP spokesperson said: “We are committed to eliminating waste and ensuring benefits go to those who are entitled to them so we can continue to invest in public services.”
One social media user commented that although the issue is now being resolved, it should have been brought under control in 2019, criticizing the previous government’s handling of the situation.
Emily Holzhausen, Director of Policy and Public Affairs at Carers UK, stressed that unpaid carers had been misled into thinking the issue was resolved in 2019. “They deserve better. We’ve called on the government to cancel debts in cases where earlier intervention could have prevented them,” she said.
An internal tool designed to verify earnings and pensions was reportedly only used on half the alerts, leading to overpayments that many carers were later forced to repay. The amounts varied widely, from £1,000 to as much as £20,000, according to The Guardian.
In 2019, Sir Peter Schofield had assured MPs that new technology would soon prevent such overpayments, even stopping some before they occurred.
