general

MPs warn of new inquiry into DWP carers allowance scandal

Mar 22nd 2026 ยท United Kingdom

MPs have threatened a fresh inquiry after delays in the Department for Work and Pensions redress plans for carers wrongly issued overpayment bills based on unlawful earnings guidance.

  • MPs are considering a fresh Commons inquiry after the committee chair raised concerns about a series of DWP missteps.
  • The DWP changed its averaging guidance in September 2025 and formally accepted the rules were faulty in November 2025 following the Sayce review.
  • Some carers received repayment demands after the department admitted the guidance was unlawful, including a December demand calculated under the old rules.
  • A Guardian investigation found DWP errors left hundreds of thousands of carers unfairly in debt and led to some wrongful fraud convictions.
  • Carers and charities say people are stuck in limbo because reassessment plans are delayed and tribunal hearings are postponed.
  • The DWP says it has accepted most Sayce recommendations and has hired staff, updated guidance, and improved letters.