Labour to set up review after carer’s allowance overpayments scandal

Labour to set up review after carer’s allowance overpayments scandal

Exclusive: overhaul of system that imposed draconian penalties for innocent errors in benefit claims is expected

Draconian penalties that caused unpaid carers to rack up thousands of pounds of debt after unwittingly falling foul of benefit rules are to be overhauled, the government has announced.

The move comes six months after a Guardian investigation revealed tens of thousands of vulnerable carers were being ordered to repay hefty overpayments – and even threatened with criminal prosecution – over minor breaches of carer’s allowance earnings limits.

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