One Penny Triggers Full Repayment for Carers
DWP hoards real-time data, notifies years late, debts hit £20,000
DWP's carers allowance enforces total repayment for 1p over earnings limit, trapping hundreds of thousands in debt despite real-time data access. Officials blame carers, partially accept fixes, revealing unaccountable welfare pathology across governments.
Commentary Based On
the Guardian
Pressure grows on DWP over ‘misleading’ response to carer’s allowance scandal
The Department for Work and Pensions possesses near real-time earnings data. It alerts carers years after overpayments accrue. Debts reach £20,000, with threats of prosecution.
Prof Liz Sayce’s review exposes systemic flaws over a decade. Hundreds of thousands of unpaid carers, supporting relatives for 35 hours weekly, fell into this trap. DWP management and culture require overhaul, the report states.
Neil Couling, DWP’s top carers’ allowance official, blamed carers for the failures. His internal comments surfaced days after the review. Charities and advisers lost confidence in DWP pledges.
Peter Schofield, DWP permanent secretary, assured MPs in 2019 the issue stood fixed. The crisis persisted under his oversight. He apologised to parliament this month but offered no timeline beyond vague commitments.
Ministers allocated £75 million for remediation. They ordered reassessment of 200,000 historical cases. DWP projects debt relief for 26,000 carers; experts forecast higher numbers.
The Sayce review issued 40 recommendations. DWP fully accepted most, partially 13, rejected two. Clearer guidance on allowable expenses received only partial uptake.
Labour ministers term the flaws a legacy of Tory inaction. Yet the cliff-edge rule and notification gaps trace back decades across governments. No administration reformed the draconian threshold.
Blame Shifts, Accountability Evades
Civil servants retain positions despite repeated promises unmet. Couling faces calls to resign; Schofield scrutiny mounts without consequence. Ministers distance from internal memos while claiming decisive action.
Carers UK deems the scandal’s scale devastating, not minor. Prof Sue Yeandle demands unreserved apology and compensation for long-term debts. DWP responses minimise impact, eroding trust further.
This mirrors welfare system’s other traps: universal credit sanctions hit migrants 200 times daily yet claims surge. Benefits enforce compliance through debt, not prevention. Taxpayers fund £10 billion annually in migrant support alone.
Functional governance would automate alerts with real-time data. It would index thresholds to inflation and exempt minor breaches. UK systems instead recover post-harm, punishing vulnerability.
Carers endure intolerable strain from DWP power imbalances. They balance care and low-wage work under rigid rules. Institutional opacity shields officials from fallout.
DWP exemplifies Britain’s welfare apparatus: designed to claw back payments, blind to human cost. Cross-party neglect sustains debt machines that trap the vulnerable. Ordinary citizens witness state institutions prioritise process over people, deepening the legitimacy crisis.
Commentary based on Pressure grows on DWP over ‘misleading’ response to carer’s allowance scandal by Josh Halliday on the Guardian.