Government Review Finds Department for Work and Pensions Failures in Carers Allowance System
A review led by Liz Sayce has uncovered significant system and leadership failures within the Department for Work and Pensions (DWP), which caused carers to accumulate substantial debts. The investigation linked some cases to mental illness and the possibility of criminal convictions, highlighting severe consequences for affected individuals.
The review criticized a lack of organisational curiosity within the DWP and noted a mixed culture among staff, with some committed to improvement while others defended the existing status quo. Internal tensions were evident, including incidents where Neil Couling blamed carers for the failures, attracting criticism from ministers and Members of Parliament. Sir Peter Schofield issued an apology and pledged to rectify the problems. Furthermore, whistleblower Enrico La Rocca faced retaliation, including brief dismissal before being reinstated, amid subsequent parliamentary intervention.
In response to these findings, the government has accepted most of Sayce’s 40 recommendations but rejected changes concerning how overpayments are recorded and some guidance on allowable expenses, seen by critics as a missed opportunity. To address the historical issues, a three-year, £75 million plan will be launched early next year to review past overpayments and overhaul the benefits system.
Around 200,000 historical cases will be reassessed, with approximately 26,000 carers expected to have their debts canceled or reduced. There is also a serious concern that unpaid carers may have obtained criminal records due to DWP failures; in some instances, individuals may have pleaded guilty to lesser charges to avoid harsher sentences.
Government ministers emphasized that the DWP inherited a failing system but are now taking decisive action. Measures include hiring additional staff, updating internal guidance, clarifying communication letters, and continuing efforts to reassess and potentially cancel or refund debts. The benefit system will be modernized to prevent similar issues from occurring in the future.
