Carer’s Allowance

Julian Lewis Excerpts

Wednesday 16th October 2024 Commons Chamber

[Ed Davey]

Thank you, Mr Speaker. The hon. Gentleman is of course right and I pay tribute to his constituent, who was lucky enough to be presented the award by Mr Speaker. He is right about the mental health of carers. NHS data shows that the mental health of carers is twice as poor as it is for the population at large because of the isolation, so that issue is absolutely a part of this debate.

[Sir Julian Lewis (New Forest East) (Con)]

rose—

[Ed Davey]

I will let the right hon. Gentleman in, but then I do want to make some progress.

[Sir Julian Lewis]

Before the right hon. Gentleman resumes his narrative—he speaks with huge authority on this subject—can he underline what he told the House before the previous intervention? This was a case where someone reported what they were doing, was wrongly told it was okay to proceed and was then hit with a bill for thousands of pounds retrospectively. Surely that is incompetence and maladministration. Is there not any way for that person to have recourse to justice?

[Ed Davey]

The right hon. Gentleman makes exactly the right point and as her MP I am pursuing that line of argument, but we need a change of culture and attitude at the DWP to be able to proceed with these cases on behalf of our constituents. She told me that the whole thing makes her want to give up caring and give up working. That is how affected she has been. Who is it helping, when carers feel like that?

I am sure that someone, somewhere in the DWP or the Treasury, thinks this sort of penny pinching saves the Government money, but they could not be more wrong. It is millions of carers like Andrea who save the Government money: £162 billion a year, according to Carers UK, through the vital work they do for free. When badly designed Government policies fail to support carers and instead push them over the edge, the real cost—an enormous cost—is to taxpayers and the economy.

There are so many stories like Andrea’s. Government figures suggest that more than 130,000 people have outstanding carer’s allowance debt, some going back years. According to the DWP’s own figures, last year alone there were 34,500 overpayments due to the earnings limit. We have heard how carers have even been threatened with prosecution. This is a terrible scandal: tens of thousands of carers becoming victims of a system that is supposed to be there to support them.

Although the stories we have heard in recent months have been truly shocking, they are not new. The Work and Pensions Committee launched an inquiry into this issue almost six years ago, back in 2018. The National Audit Office published its own report in 2019. The last Government should have acted then, but they did nothing. I raised it with the last Prime Minister. He did nothing. Conservative Ministers failed to tackle it for the entirety of the last Parliament. They just passed it on to the new Government, as yet another part of their legacy.

I raised the matter, therefore, at the new Prime Minister’s first oral questions in July. Although he was non-committal, I am genuinely pleased and grateful that Ministers have now announced a review, at least into the scandal of carer’s allowance overpayments. Whether that was in response to our motion, I will let others decide. I hope the Minister will say a lot more about the review when she speaks and how the Government are thinking about that. I hope the debate can be seen as the first input to, or kick-off of, that review. I certainly hope the Minister will make it clear that the review will not be a repeat of the type of review we had in the last Parliament, when Conservative reviews were set up primarily for delay and kicking issues into the long grass.

As I hinted at during today’s Question Time, my concern about the review is that the evidence to make a decision is already well-founded, with two recent Select Committee reports and mountains of evidence immediately available from organisations such as Carers UK or Carers Trust, and the National Audit Office carrying out its second review in just five years over the last four months. I ask the Secretary of State, therefore, to reshape the review that she has announced, because it is self-evident that the vast majority of overpayments of carer’s allowance should be written off immediately. I accept that there may be a few cases of genuine fraud in which that would not be appropriate, but the DWP should not be persecuting tens of thousands of carers whose overpayments were caused by the crazy cliff edge in the current carer’s allowance system, and by the DWP’s own incompetence in failing to notify them of overpayments immediately.

Some changes could be made to the rules that are just common sense, making it easier for carers to juggle work and care and thus boost our economy, such as raising the earnings limit and replacing the cliff edge with a taper. There are changes that do not need a long review; there are decisions that can be taken now, or at least very quickly. However, as our motion says, we need to go further for carers than these obvious and relatively simple decisions. The Government should conduct a full-scale review of all support for carers, so that we can make it easier for them to carry on caring and to juggle caring with work. That will be better for them, better for their loved ones, and better for our economy.

I urge the House to pass the motion. Let us not allow carers to be forgotten and ignored any longer.