The Labour government has placed Carer's Allowance under official review, sparking significant concern for hundreds of thousands of unpaid carers across the UK. The announcement came in a formal response to a written Parliamentary question from Labour MP Dan Carden.
Parliamentary Question Triggers Government Response
Dan Carden, the MP for Liverpool Walton, directly asked the Secretary of State for Work and Pensions if there were plans to review or amend Carer's Allowance. In a reply on behalf of the government, Labour MP Sir Stephen Timms stated that "The Government keeps all aspects of Carer's Allowance (CA) under review to see if it is meeting its objectives."
This confirmation arrives while Sir Stephen Timms is also leading a separate review of Personal Independence Payment (PIP), indicating a busy period for DWP assessments.
The Devastating Scale of Overpayment Debts
The review comes against a backdrop of a major scandal concerning benefit overpayments to carers. An investigation by The Guardian previously exposed how draconian penalties and DWP administrative failures have plunged countless families into financial crisis.
Shockingly, more than 144,000 carers are now repaying a total of £251 million to the DWP. These overpayments typically average around £5,000 per person, but some families face life-changing bills of up to £20,000. In many tragic cases, these debts were accrued by carers accidentally breaching complex earnings rules by mere pence per week.
Growing Calls for Compensation and Systemic Overhaul
The situation has prompted strong reactions from campaigners and opposition leaders. Sir Ed Davey, leader of the Liberal Democrats and a long-standing campaigner on carer issues, voiced his hope that the government would provide victims with the compensation they deserve.
"It would be a milestone for carers across the country, and a victory for all those who have campaigned tirelessly for justice," Davey said. "The government has a chance here not just to compensate the victims, but to overhaul carer’s allowance so it properly supports carers and doesn’t punish them for working."
Helen Walker, chief executive of Carers UK, highlighted the human cost, stating: "Far too many carers are currently repaying debts that the government should have told them about much earlier... It’s been devastating for carers, many of whom have been badly hit financially and it’s taken an enormous toll on their mental health."
The government's review of Carer's Allowance is now under immense pressure to not only assess the benefit's objectives but to deliver tangible justice and reform for a dedicated group of individuals who have been failed by the system.