Anna Dixon Calls for Overhaul of Carer’s Allowance System on 50th Anniversary of the Benefit
- Apr 14
- 3 min read
Anna Dixon MP for Shipley, has today urged the government to take “fundamental action” to support unpaid carers, following what she described as a “systemic failure” in the administration of Carer’s Allowance overpayments.
Delivering the opening speech in a Westminster Hall debate she hosted on the Carers Allowance Overpayment Scandal this morning, Dixon highlighted the scale of the issue and its impact on families across the country. The debate coincides with the upcoming 50th anniversary of Carer’s Allowance, first introduced in 1976 as the Invalid Care Allowance.
Carer's Allowance is granted if you care for someone for at least 35 hours a week and they receive specific benefits, like Personal Independence Payment. However, some individuals were required to repay thousands of pounds to the Department for Work and Pensions (DWP) after unknowingly crossing a “cliff edge”, leading to severe debt.
Yesterday, it was announced that tens of thousands of unpaid carers affected by confusing guidance on their earnings are set to have their debts reduced, cancelled, or refunded, as part of a major reassessment of cases.
Ms Dixon, who has spent much of her career working on social care policy and is currently the Chair of the All-Party Parliamentary Group on Carers, said that the scandal had caused “immeasurable human cost”, before going on to call for the Carer’s Allowance to be raised.
Speaking in Westminster Hall, Anna Dixon MP said: “Supporting carers should be a moral mission of any government. There are 5.8 million unpaid carers in the UK, and the economic value they contribute is £184 billion per year, which is more than the entire NHS budget in England for health service spending.
“However, despite the value carers bring to our society, our society does not value them. 1.2 million unpaid carers in the UK live in poverty, and according to Carers UK, around half of unpaid carers cut back on essentials in 2025.
“It is for all these reasons that the Carer’s Allowance overpayments scandal is so hard to stomach. As many as one in five unpaid carers who claimed carer’s allowance and worked part-time were hit with overpayments totalling more than £300 million between 2019 and 2024. Thousands of carers have been left with huge debts and the fear of financial ruin.
“It is imperative that the Government finds all those affected, so that they can get their situation reviewed and remedied.
“I therefore welcome the announcement made yesterday that the government has launched an audit of over 200,000 Carer's Allowance cases which were affected by unclear government guidance in place between 2015 and 2025.
“Their cases will now be reviewed, with debts potentially reduced, cancelled or refunded for around 25,000 unpaid carers.
“We need to see fundamental changes within the DWP, as the Sayce Review identified. We need to see the implementation of new systems, and I would be keen to hear more from the Minister about a timeline for this. We also need to see a reform to the DWP’s culture.
“That is why, on the 50th anniversary of Carer’s Allowance, I am calling on this Labour Government to right the wrongs caused by the state and put right the scandal of the Carer’s Allowance overpayments so that our carers are paid what they deserve and not punished for the dedication and care they provide.”
