LONDON, UK – December 20, 2025 – The Department for Work and Pensions (DWP) is facing a fresh wave of condemnation from campaigners and experts who have branded the government’s response to the Carer’s Allowance overpayment scandal as “misleading” and lacking in urgency. Despite recent promises to reassess nearly 200,000 cases, critics argue that the scale of the relief offered is vastly insufficient for the “intolerable strain” placed on vulnerable families.
The scandal, which has been compared to the Post Office Horizon crisis, involves thousands of unpaid carers—many on the lowest incomes—being hit with demands to repay thousands of pounds after accidentally exceeding a strict weekly earnings limit. In some extreme cases, debt levels have reached £20,000, leading to criminal prosecutions and financial ruin.
“Really Misleading” Claims on Affected Numbers
The latest row was ignited by comments from Professor Sue Yeandle, a leading expert on unpaid care who sat on the advisory panel for the government-commissioned Sayce Review. Speaking this weekend, Yeandle accused ministers and senior officials of downplaying the crisis by claiming it affects only a “small number” of people.
“This is not a small number of people,” Yeandle stated, pointing out that while the DWP has agreed to reassess historical cases dating back to 2015, it currently estimates that only about 26,000 carers will actually see their debts reduced or cancelled. Experts believe the true number of those deserving redress is far higher, accusing the department of using restrictive criteria to limit the payout.
Furthermore, campaigners highlighted that while the DWP claimed to accept “the vast majority” of the Sayce Review’s 40 recommendations, 13 were only partially accepted and two were rejected outright.
Systemic Failure and a “Broken” Cliff-Edge
The heart of the crisis lies in the benefit’s “cliff-edge” design. Under current rules, if a carer earns just 1p over the weekly limit (currently £196), they lose their entire £83.30 allowance for that week. Because the DWP often fails to act on real-time alerts from HMRC, these overpayments can go unnoticed for years, allowing life-changing debts to accumulate.
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Total Debt: Outstanding overpayment debt has soared to £250 million, a 71% increase since 2019.
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Lack of Compensation: While the government has set aside £75 million for reassessments, it has notably refused to offer compensation for the mental health toll and legal costs endured by those wrongly criminalised.
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Demands for Resignation: Calls for the resignation of senior civil servants, including DWP Permanent Secretary Peter Schofield, have intensified. Schofield is under fire for overseeing the crisis despite promising MPs in 2019 that it would be fixed.
A DWP spokesperson insisted the department is taking “decisive action to put things right,” including hiring extra staff to process alerts more quickly. However, for those still facing bailiffs for “crimes” of caring, the government’s response feels like too little, too late.
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