MPs on the public accounts committee (PAC) have called on the Department for Work and Pensions (DWP) to speed up compensation for tens of thousands of unpaid carers wrongly forced to repay benefit overpayments. The committee said management failures and systemic issues at the DWP led to carers being incorrectly hit with debts often running into thousands of pounds.
The PAC chair, Sir Geoffrey Clifton-Brown, described the situation as a scandal, noting that carers on modest incomes had done nothing wrong. A government-commissioned review published in November concluded that carers should not be blamed for a complex and punitive system, and that many suffered severe harm to their health and finances.
Official estimates suggest at least 26,000 carers were wrongly penalised for breaching earnings rules designed to allow part-time work. Ministers have ordered a two-year, £75m review of over 200,000 overpayment demands dating back a decade, which may lead to debts being cleared or reduced.
The PAC also criticised a lack of leadership at the DWP, which allowed problems to persist for years. Its comments follow a Guardian investigation revealing that the department knew about the flaws but failed to act. Last week, work and pensions committee chair Debbie Abrahams accused the DWP of a 'culture of complacency'.
Labour MP Anna Dixon, a PAC member, said the departure of DWP permanent secretary Sir Peter Schofield offered a chance for a reset, but questioned whether the department had the capacity to put things right. The PAC said it would monitor progress closely and expects an update within six months.
A DWP spokesperson said the government inherited a failing system and is taking decisive action, including hiring extra staff, updating guidance, and reassessing affected cases to reduce or refund debts for tens of thousands of carers.
