Vows to end DWP scandal that left thousands in debt as minster say 'we can put things right'

The review will be led by Liz Sayce, the former chief executive of the charity Disability Rights UK

Work and Pensions Secretary Liz Kendall has initiated an "open and transparent" independent review of carer’s allowance overpayments following revelations that tens of thousands of carers were being asked to repay substantial overpayments. The review will be led by Liz Sayce, the former chief executive of Disability Rights UK, and will investigate how and why these overpayments happened and how the Department for Work and Pensions (DWP) can assist those affected.

Kendall expressed specific concerns about carers who had been compelled to make repayments after exceeding the earnings limit for the benefit by a "small amount". Unpaid carers who provide care for someone receiving certain benefits for at least 35 hours a week are eligible for the allowance, which is worth £81.90 a week.

Don't miss the biggest and breaking stories by signing up to the BirminghamLive newsletter here.

However, carers can only claim the benefit if their earnings from paid work, after tax, National Insurance, pension contributions and allowable expenses are less than £151 a week. A Guardian investigation earlier this year exposed that tens of thousands of carers had received overpayment notices after breaching the earnings limit, often by a very small amount.

In many instances, the DWP did not identify the overpayments until months or years later, and in some cases, carers were threatened with criminal prosecution.

A recent survey of 12,500 unpaid carers by Carers UK revealed that out of the 40 per cent who claim or had claimed a carer’s allowance, one in five had to repay overpayments due to unknowingly breaching the earnings limit. As of 14 May, internal DWP figures shared by Paul Maynard, then a minister in the department, showed there were 134,800 people with an outstanding carers allowance debt – totalling £251m.

Liz Sayce, now a visiting professor in practice at the London School of Economics, stated her work "aims to get to the bottom of how overpayments have occurred and how to prevent people who devote such time and care to others facing these difficulties in future". In a statement, Kendall expressed it was "brilliant that Liz Sayce has agreed to lead this with all the experience she brings".

Sayce served as the interim chair of the Social Security Advisory Committee from August 2019 until August 2020 and held senior roles at the Disability Rights Commission and mental-health charity Mind. She also led an independent review into disability employment programmes for DWP in 2011.

Kendall added: "I have been a lifelong champion of family carers and know many have been pushed to breaking point looking after the people they love. This is not okay. We’re determined to learn lessons and put this right."

The Work and Pensions Secretary has expressed her distress over accounts of carers having to repay large sums in an interview with The Guardian. She stated: "I am determined to be open and transparent about what has happened in the carer’s allowance and to learn all the lessons. This review marks a big step forward for unpaid carers, shedding light on this issue so we can put things right."