The DWP has left unpaid carers in £357 million of debt thank to its own negligence

At least £357 million has been wrongly demanded from unpaid carers over six years due to Department for Work and Pensions (DWP) systemic failures, prompting soaring debts, mental health struggles and calls for urgent reform of the carer’s allowance system.

The DWP has systematically abused carers

The revelation that at least £357 million in carer’s allowance payments have been made in error over the past six years highlights a devastating legacy of negligence from the DWP.

This grim figure is not merely a number; it represents the mounting debt and distress inflicted on hundreds of thousands of dedicated, unpaid carers, many of whom are already navigating the difficult terrains of caring for loved ones amidst financial uncertainty.

Carers UK, which unearthed this figure through newly released official data on fraud and error, has described the DWP’s handling of the situation as an “unacceptable failure”.

Despite previous assurances about new technologies designed to prevent such overpayments, the stark reality is that minor breaches of earnings rules have led to massive repayment demands.

The DWP had claimed that by 2019, such problems would be largely resolved. It suggested that their new earnings verification tool would “prevent overpayments in some cases before they happen.” It seems, however, that these assurances hold little weight against a background of systemic failures.

Making criminals out of vulnerable families

Many unpaid carers, like Guy Shahar, now find themselves beset by debts that can soar as high as £20,000 due to clerical oversight. Shahar expressed that the enormity of excessive charges appears both “shocking” and fundamentally unjust, given the DWP’s previous commitments to improve the system.

“They are making criminals out of vulnerable families they are supposed to be helping,” he lamented. This sentiment echoes through the community of unpaid carers, who feel unfairly targeted and victimised by an unwavering bureaucratic system at the DWP.

The DWP’s reliance on a policy that called for only half of all alerts from its earnings verification tool to be investigated meant that countless overpayments spiralled unchecked for months, if not years.

In the five years following the introduction of the verification tool, over 262,000 repayment cases have emerged, collectively totalling more than £325 million. Alarmingly, around 600 carers have even faced criminal charges, burdening them—and their families—with criminal records as a consequence of administrative oversight.

Moreover, the impact of these overpayments stretches beyond financial strain.

An extraordinary toll

According to a report by Carers UK, the emotional toll on unpaid carers has been extraordinary, with many experiencing deteriorating mental health and overwhelming anxiety. The average overpayment faced by carers hovers around £4,000, but the ramifications are far greater than mere finances; lives are disrupted, trust eroded, and mental wellbeing compromised.

As Emily Holzhausen, director of policy and public affairs at Carers UK, pointed out:

Given that unpaid carers were falsely assured that the problem would be largely resolved, they deserve better.

In a somewhat reactive response, DWP ministers have finally pledged £800,000 to better staff the carer’s allowance division, with the aim of scrutinising 100% of alerts to stem the tide of overpayments at their source.

However, this initiative raises the question of why, after years of warnings and clear evidence of failure, such fundamental changes only arrive after media scrutiny and persistent pressure from advocacy groups.

State-sanctioned abuse from the DWP

It is clear that the current system is broken, with a 71% spike in overpayment cases reported since 2018. This surge signals an urgent need for comprehensive reform within the carer’s allowance framework, not just to avert future financial crises but to support the critical role that carers play in our society.

Advocacy groups are clamouring for not only an overhaul but also for increased earnings thresholds that reflect the reality of living costs, particularly when many carers are forced to juggle work and caregiving.

Ultimately, the situation reflects a deep-seated issue within the DWP—a bureaucratic entity that targets chronically ill, disabled, and older people, and their carers, as criminals and scroungers rather than people deserving of support.

Carers deserve a system that empowers them rather than burdens them with unnecessary debts and anxiety. The ongoing fallout from these overpayments serves as a stark reminder of the imperative for better governance, transparency, and, above all, compassion in the support of the invaluable role that unpaid carers play in our communities.

Featured image via the Canary