Ed Davey calls for halt on carer penalties amid benefits scandal

Published: 20 October 2025. The English Chronicle Desk. The English Chronicle Online.

Ed Davey, leader of the Liberal Democrats, has urged the government to suspend penalties against thousands of unpaid carers affected by flaws in the administration of carer’s allowance. The call comes amid mounting concerns over a benefits scandal in which carers were unfairly burdened with debt and, in some cases, prosecuted due to systemic failures in the benefits design.

Last year, a Guardian investigation revealed that hundreds of thousands of carers were caught in the fallout of mismanaged rules, many accumulating substantial debts inadvertently. Despite promises from the government to reform carers’ allowance, campaigners say progress has been slow, and new repayment demands continue to hit carers every week. Davey insisted that it is unacceptable for carers to be penalised while the system remains broken.

“It cannot be right that the government is still hounding carers for repayments, long after this scandal was exposed and even after we secured an independent review, but before anything has been done to put things right,” Davey said. He called for an immediate suspension of repayments until the government publishes the findings of the independent inquiry and implements meaningful reforms.

The inquiry, led by disability policy expert Liz Sayce, was commissioned by the government in December and submitted its findings three months ago. However, the government has yet to release the report or provide a formal response. Davey emphasised that the government must act urgently to protect unpaid carers from ongoing financial hardship.

A Liberal Democrat amendment to the government’s fraud and error bill, set for debate in the House of Lords next week, urges the Department for Work and Pensions (DWP) to halt the pursuit of repayments until reforms are enacted. Lord Palmer, the Liberal Democrat work and pensions spokesperson in the Lords, criticised the continued punishment of carers, describing the scandal as “a national disgrace.”

Currently, at least 144,000 carers are repaying over £251 million in carer’s allowance overpayments. Individual repayments typically range from £2,000 to £5,000, though some cases have reached as high as £20,000. These penalties are triggered when carers working part-time exceed the earnings limits attached to the £82.30 weekly benefit.

The system’s “cliff edge” approach has drawn particular criticism. Even minor breaches of the earnings threshold can trigger repayment of the entire allowance. For example, a carer who exceeded the weekly earnings limit by just 50p for 52 weeks would be required to repay £4,258.80, far above the actual excess earnings.

Compounding the problem, the DWP has repeatedly failed to investigate electronic notifications alerting the department to potential breaches. This oversight has resulted in claimants unknowingly accumulating overpayments over several years. Campaigners argue that these errors are indicative of longstanding systemic failures that have gone unaddressed, despite internal warnings from whistleblowers and concerns raised publicly by MPs.

Emily Holzhausen, director of policy and public affairs at Carers UK, highlighted the urgent need for action. “It’s critical that we see the publication of the independent review very quickly, with a clear timeline for action to ensure that this scandal is addressed head-on. With every day that goes by, unpaid carers are still being subjected to overpayment demands operating under what, everyone has acknowledged, is a broken system,” she said.

Holzhausen also stressed the personal impact on carers, noting that breaching the earnings limit, even unintentionally, can have devastating consequences. “Given the devastating impact this can have on unpaid carers who unwittingly go over the earnings limit, it’s essential that we get this change as soon as possible to prevent more carers ending up in such a terrible situation,” she added.

In response, a DWP spokesperson defended the department’s actions, highlighting measures already undertaken to support carers. “We’re on the side of carers. That’s why we’ve commissioned an independent review of carers’ allowance overpayments and delivered the biggest ever cash increase in the benefit’s earnings threshold – helping 60,000 carers by 2029-30,” the spokesperson said.

The department added that it will respond to the independent review in due course. In the meantime, the DWP insists it must balance its responsibility to taxpayers while ensuring carer’s allowance is administered fairly, accurately, and in a manner that best supports recipients.

The ongoing controversy underscores wider concerns about the administration of social security benefits in the UK, particularly those affecting vulnerable groups such as unpaid carers. Experts argue that repeated overpayment demands, combined with unclear guidance and outdated systems, have left many carers facing undue financial pressure, often while providing essential support to family members or loved ones.

The carer’s allowance scandal has also prompted calls for broader reforms, including a review of the threshold limits, repayment mechanisms, and the overall design of the benefit. Advocates argue that a more flexible system could prevent minor infractions from escalating into significant financial penalties, allowing carers to focus on their vital work without fear of disproportionate repercussions.

Political pressure is mounting as campaigners and opposition leaders demand swift government action. Davey has urged ministers to publish the independent review, halt all repayments in the interim, and implement reforms that will prevent further harm. Failure to act, critics warn, risks prolonging the financial distress of thousands of carers already burdened by systemic failures beyond their control.\

The ongoing debate over carer’s allowance also highlights broader issues of accountability and fairness in social security administration. With millions of carers providing unpaid support across the UK, ensuring that benefits are managed effectively and equitably is a pressing concern. Stakeholders argue that a modernised approach could combine robust oversight with protections for claimants, preventing repeated errors and fostering confidence in the system.

As the House of Lords prepares to debate the amendment, attention will focus on whether the government is willing to pause repayments and take substantive steps to address the failures identified in the independent inquiry. The outcome of the debate and subsequent government action could have far-reaching consequences for unpaid carers, the administration of benefits, and public trust in social security oversight.

In the meantime, organisations representing carers continue to advocate for immediate relief measures and clear timelines for reform. By calling for a suspension of penalties, Ed Davey and fellow campaigners hope to alleviate ongoing hardship and ensure that carers are treated fairly while the government rectifies systemic issues that have persisted for years.