A Decade of Shame: Carer's Allowance System Riddled with 'Systemic Flaws'
The UK government has been left reeling from a scathing report on its carer's allowance system, a benefit meant to support those caring for loved ones. The 146-page review, commissioned after a Guardian investigation, paints a devastating picture of how the Department for Work and Pensions (DWP) has treated unpaid carers.
At the heart of the issue is the government's 'benefits trap', a system designed to prevent fraud but which ruthlessly targets those who are most vulnerable. The DWP has access to real-time alerts on earnings, but only investigated half of these alerts in order to meet internal targets. This led to 230,400 unpaid carers being left in the dark for months or years about potential overpayments.
The consequences were severe. Many carers were left feeling ashamed and overwhelmed, with some considering taking their own lives. One told an inquiry team they "lost weight, I couldn't sleep" after being forced to pay back money to the DWP. Another didn't even tell their own family about the debt, citing feelings of shame.
The system also has a 'cliff edge' that punishes carers with small overpayments mercilessly. Someone who exceeds the weekly earnings limit by just 1p must repay £4,331.60 plus a £50 civil penalty – a punishment disproportionate to the offense.
Perhaps most disturbingly, unpaid carers are treated as criminals by default, with the DWP assuming negligence is always their fault. This approach has been shown time and again to be based on official error rather than deliberate rule-breaking.
The report also highlights how claimants of carer's allowance are disproportionately penalized, with more £50 civil penalties handed out than recipients of universal credit, despite there being eight times fewer unpaid carers.
As a result, the DWP has promised to review decisions on approximately 185,000 unpaid carers spanning 10 years. However, this limited scope will not address the underlying problems with the system.
The report's author, Liz Sayce, has called for urgent reform of the 'cliff edge' and other elements of the system. The government has accepted most of her recommendations but has yet to provide an official apology or offer of compensation to those affected.
The scandal raises questions about the welfare state and its ability to support those in need. As Pat McFadden, work and pensions secretary, put it: "Rebuilding trust isn't just about warm words – it's about action, accountability, and making sure our support works for the people who need it most."
But with a system as broken as this, it remains to be seen whether the government can deliver on its promises.
The UK government has been left reeling from a scathing report on its carer's allowance system, a benefit meant to support those caring for loved ones. The 146-page review, commissioned after a Guardian investigation, paints a devastating picture of how the Department for Work and Pensions (DWP) has treated unpaid carers.
At the heart of the issue is the government's 'benefits trap', a system designed to prevent fraud but which ruthlessly targets those who are most vulnerable. The DWP has access to real-time alerts on earnings, but only investigated half of these alerts in order to meet internal targets. This led to 230,400 unpaid carers being left in the dark for months or years about potential overpayments.
The consequences were severe. Many carers were left feeling ashamed and overwhelmed, with some considering taking their own lives. One told an inquiry team they "lost weight, I couldn't sleep" after being forced to pay back money to the DWP. Another didn't even tell their own family about the debt, citing feelings of shame.
The system also has a 'cliff edge' that punishes carers with small overpayments mercilessly. Someone who exceeds the weekly earnings limit by just 1p must repay £4,331.60 plus a £50 civil penalty – a punishment disproportionate to the offense.
Perhaps most disturbingly, unpaid carers are treated as criminals by default, with the DWP assuming negligence is always their fault. This approach has been shown time and again to be based on official error rather than deliberate rule-breaking.
The report also highlights how claimants of carer's allowance are disproportionately penalized, with more £50 civil penalties handed out than recipients of universal credit, despite there being eight times fewer unpaid carers.
As a result, the DWP has promised to review decisions on approximately 185,000 unpaid carers spanning 10 years. However, this limited scope will not address the underlying problems with the system.
The report's author, Liz Sayce, has called for urgent reform of the 'cliff edge' and other elements of the system. The government has accepted most of her recommendations but has yet to provide an official apology or offer of compensation to those affected.
The scandal raises questions about the welfare state and its ability to support those in need. As Pat McFadden, work and pensions secretary, put it: "Rebuilding trust isn't just about warm words – it's about action, accountability, and making sure our support works for the people who need it most."
But with a system as broken as this, it remains to be seen whether the government can deliver on its promises.