The Secretary of State of Work and Pensions, Liz Kendall, has announced that the Government will commission an independent review of Carer’s Allowance overpayments – to assess how these have been accrued on such a vast scale.

In response to this announcement, Helen Walker, Chief Executive of Carers UK said:

“Carers UK welcomes the appointment of Liz Sayce OBE to lead the review, and we look forward to engaging with her on this. In July this year, Carers UK and unpaid carers presented a dossier showing widespread evidence of the shocking impact Carer’s Allowance overpayments are having on carers’ lives and their ability to do paid work to Sir Stephen Timms, the new Minister for Social Security and Disability at the Department for Work and Pensions (DWP).

“We have been vocal in our campaign for change, Carer’s Allowance overpayments are having a devastating effect for many carers, causing additional stress and anxiety when many are already under huge pressure and in precarious financial positions.

“It is positive to see the Government taking steps to tackle this scandal. Since the National Audit Office (NAO) conducted its investigation into overpayments in 2019, the number of unpaid carers affected has grown from 80,000 to nearly 135,000 with an overpayment - urgent and immediate action is needed.

“This review needs to tackle the root causes of overpayments to ensure these are prevented for as many carers as possible. Nearly 140 carers contributed to our recent report detailing many heart-breaking stories and instances of how overpayments can be avoided with different systems and processes. We hope the Government takes on board our recommendations.

“However, it is also important to 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."

Please click here to see a copy of the Carers UK Carer's Allowance overpayments report.