Unpaid Carers to Have Cases Reassessed Due to System Failures

Thousands of unpaid carers will have their cases reassessed after an official review found they were left with huge debts due to system failures. Former charity boss Liz Sayce found that confusing guidance on carer’s allowance has left thousands with fines and surprise bills, sometimes running into thousands of pounds.

Background of the Issue

The carer’s allowance is given to those who provide 35 hours of unpaid care a week. However, the guidance on the allowance has been unclear, leading to thousands of carers being convicted of benefits fraud or harassed by officials for money. The issue has been ongoing, with hundreds of carers claiming they had been affected.

Government Response

Work and Pensions Minister Pat McFadden said the government would address any failings affecting care workers. The government has inherited the issue from the previous government but has listened to carers, commissioned an independent review, and is now making amends for those affected. McFadden stated that restoring trust is not about warm words, but about action, responsibility, and ensuring support goes to those who need it most.

Findings of the Review

Sayce’s analysis found that between 2015 and summer 2025, official guidelines on carer’s allowance were unclear, preventing many carers from properly reporting their income. Unpaid carers who look after their loved ones for at least 35 hours a week can be entitled to carer’s allowance of £83.30 a week, provided their weekly income stays below £196. However, under a so-called "cliff edge" earnings rule, anyone who exceeds this limit by just 1p will have to pay back the entire week’s carer’s allowance.

Consequences of the Failures

The Department for Work and Pensions (DWP) will also impose a £50 fine on anyone who fails to properly declare a change in their income. The law allows income to be "averaged" over time, but Sayce noted that broad provisions led to different interpretations by both the DWP and the courts. As a result, care workers who worked irregular hours or were paid variable wages often assumed that their income could be averaged, but were instead fined by the DWP.

Next Steps

The DWP will immediately begin reassessing the cases and potentially cancel or repay debts. Sayce welcomed the announcements, saying the policy had a significant impact on carers’ health, finances, and family wellbeing. The government’s decision to reassess the cases is a step towards addressing the issue and providing support to those who need it most.

Reaction from Other Parties

Liberal Democrat leader Sir Ed Davey said both Labor and the Tories should apologize to the tens of thousands of carers who were treated so disgracefully in the last parliament. Carers UK chief executive Helen Walker said the government would right a clear wrong and address this injustice head-on. The changes are expected to come into force in the next year, and many carers face many more months of persecution.