DWP Launches Review That Could See Thousands of Unpaid Carers Receive Refunds
The Department for Work and Pensions (DWP) is taking decisive action that could result in tens of thousands of unpaid carers having their debts wiped and potentially receiving money back. This follows a widespread review into overpayments of Carer's Allowance, with cases being reassessed dating back to 2015.
Consumer Expert Describes Situation as "Genuine Scandal"
Consumer expert Lisa Webb from Which? magazine has provided detailed insight into what she describes as a "genuine scandal" affecting the backbone of communities across the country. Speaking on BBC Morning Live, Webb explained the complex situation facing those who provide unpaid care.
Carer's Allowance provides £83.30 per week to those who provide at least 35 hours of unpaid care weekly. However, the system contains what Webb calls "draconian rules" that have created significant problems for many recipients.
The Cliff-Edge Problem That Created Widespread Debt
The central issue revolves around what Webb describes as a "cliff-edge" threshold in the earnings rules. If unpaid carers earn even 1p over their permitted threshold through additional work, they become liable to repay the entire Carer's Allowance amount they've received.
This has resulted in:
- Thousands of unpaid carers being chased for repayment by government authorities
- Significant debt accumulation among those providing vital community care
- Financial hardship for individuals who may not have realised they'd breached earnings limits
DWP Accepts Recommendations and Begins Reassessment
The DWP has now accepted the vast majority of recommendations from the Sayce Report and has committed to:
- Reassessing all relevant cases dating back to 2015
- Potentially reducing outstanding debts
- Cancelling debts entirely in appropriate cases
- Issuing refunds to those who have overpaid
Lisa Webb estimates that approximately 26,000 people could be affected by this reassessment process. She notes that for many individuals, the amounts involved represent "worth quite a lot of money" and could provide significant financial relief.
Who Might Be Eligible for Refunds or Debt Cancellation?
The review specifically affects anyone who has been asked to repay Carer's Allowance since 2015. This includes:
- Those who exceeded earnings thresholds through part-time work
- Individuals who completed 16 hours or more of paid work weekly
- Carers who may not have fully understood the complex eligibility criteria
Webb emphasises that affected individuals "may be entitled for a refund" or could see their debts cancelled altogether through the reassessment process. The DWP's action represents a significant shift in approach to what has been a longstanding issue affecting some of society's most dedicated but financially vulnerable members.
