Carers' Allowance Overpayment Reviews Could Take Decades, Charities Warn

Unpaid carers who were pursued for repayment of thousands of pounds after welfare officials unlawfully changed benefit rules could face years of uncertainty before learning whether they will get their money back, campaigners have warned.

According to the report, the Department for Work and Pensions (DWP) is working through 200,000 cases in which recipients of carer's allowance were found to have been incorrectly issued overpayment demands. An estimated 25,000 carers could be eligible for full or partial refunds, the report states.

Charities cited in the report said that at the current pace of processing, it could take until 2054 for all affected cases to be resolved, meaning some elderly or unwell claimants may not live long enough to see the matter settled.

The carer's allowance is a benefit paid to people who provide at least 35 hours of unpaid care a week to a disabled or seriously ill person. Claimants must earn below a set income threshold to remain eligible, and those who exceed it — even briefly — have in the past been required to repay the full amount received during the period in question, rather than only the excess.

Campaigners have criticised the DWP's handling of the situation, arguing that officials unlawfully changed how overpayments were calculated and pursued, leaving many carers facing large and unexpected bills for money they believed they were entitled to receive.

The Guardian's report does not detail the DWP's official response to the specific timeline concerns raised by charities, though the department has previously acknowledged it is reviewing the cases in question.

The report highlights ongoing concern among advocacy groups about delays in resolving welfare disputes affecting some of the country's most financially vulnerable carers.