MPs Threaten Fresh Inquiry into Carers Allowance Scandal Amid Redress Delays
Unpaid carers have expressed feeling stuck in limbo as the Department for Work and Pensions continues to pursue discredited repayment bills, prompting MPs to threaten a new inquiry into the handling of the carers allowance scandal. The warning follows concerns over delays in DWP plans to offer redress to tens of thousands of carers unfairly issued with overpayment bills based on flawed official guidance.
Growing Concerns Over DWP's Response
Debbie Abrahams, chair of the Commons work and pensions select committee, stated that MPs are actively considering opening a fresh investigation due to what she termed a torrent of missteps by the DWP. In a scathing letter to social security minister Stephen Timms, Abrahams raised issues over the culture of DWP management and questioned whether senior officials share ministers' commitment to addressing carer benefit injustices.
She emphasized that the DWP's failure to tackle the issue with due care could lead many to conclude the department is not serious in its public commitments, further damaging trust. This comes after revelations that hundreds of unpaid carers continue to receive repayment bills even after DWP officials knew the overpayments were based on unlawful internal guidance on averaging earnings.
Personal Stories Highlight Systemic Failures
One unpaid carer, who wished to remain anonymous, reported being notified by the DWP in March 2025 of several overpayments since 2020, despite annual average earnings within allowed limits. Although no payment demand was issued initially, in December, after the DWP quietly changed its guidance and accepted faulty rules, the carer received a demand to repay over £6,000, including a £50 civil penalty. It did get me very wound up – I couldn't sleep, I didn't feel like eating, it was worse than I have ever felt in my life, the carer said, expressing confusion over the DWP's actions post-review.
Ramzi Suleiman, policy manager at Carers Trust, criticized the DWP's reliance on old guidance as alarming, stating it is difficult to find justifiable reasons for not using updated assessments. The scandal, revealed in a Guardian investigation, has led to hundreds of thousands of carers unfairly plunged into debt, with many suffering ill-health and hundreds convicted of benefit fraud.
Delays and Criticism Mount
Despite ministers pledging to fix the system, seen as a dire inheritance from Tory predecessors, concerns over the pace of change are growing. The DWP originally promised details of a reassessment exercise in the new year but now says the launch is still weeks away. Senior DWP officials have faced repeated criticism, with disability expert Liz Sayce highlighting forces of resistance within the department, and Abrahams accusing permanent secretary Sir Peter Schofield of presiding over a culture of complacency.
In the interim, carers like Guy Shahar, 53, describe being stuck in limbo as they wait months to challenge overpayment decisions at social security tribunals. Shahar's family was hit with a £10,000 fine for accidentally overstepping earnings rules by an average of £1.92 over five years. We're back with that feeling of our whole lives being in limbo again, with all the stress and anxiety of a totally unfair £10,000 fine hanging over our heads, he said, fearing a devastating financial crisis.
Calls for Clear Communication and Action
Helen Walker, chief executive at Carers UK, stressed that carers need clear, proactive communication about the timeline for the reassessment process, noting significant uncertainty among those affected. A DWP spokesperson responded, We've accepted the vast majority of the Sayce review's recommendations and have already made changes – hiring extra staff, updating internal guidance, and making letters clearer. However, with MPs threatening a fresh inquiry and carers enduring prolonged distress, the urgency for swift and transparent resolution remains paramount to restore trust and justice in the system.
