Carers Trust chief executive Kirsty McHugh said the review was “hugely welcome”, adding “too many people have had their lives ruined by being pursued for huge sums of money simply because they made an honest mistake”.
She also expressed how she hoped the government might review and reform the “archaic and unfair” Carer’s Allowance system as a whole.
Lib Dem leader Sir Ed Davey, who is a carer for his disabled son and cared for his mother when he was young, said the strict income threshold of £151 had led to many carers wanting to give up working or caring in some cases.
“When badly designed government policies for carers push them over the edge, the real cost is to the taxpayers and the economy,” he said.
The Department for Work and Pensions (DWP) failed to notify some recipients they had been overpaid for years and when they were asked for repayment retrospectively, the debt owed was in the tens of thousands of pounds.
Work and Pensions Secretary Liz Kendall said the department was “determined to put this right” with the inquiry – which will be chaired by Liz Sayce, the former chief executive of Disability Rights UK – a leading charity representing the rights of disabled people.
The review will look at “operational changes” to minimise the risk of overpayments in the future and also examine how people with overpayments can be supported.
A report released earlier this year surveying 1,000 carers made the estimate that 3% had to make repayments after changes in circumstances meant that they received the benefit in error, but the researchers said this may be an underestimate.
Official statistics show that 1,377,000 people currently claim Carer’s Allowance in Great Britain.
The same report released in May found the DWP had known since 2021 that overpayment of Carer’s Allowance has left some people in financial difficulty.
