MPs are urging for a review of the Carer's Allowance benefit due to the increasing number of overpayments, which resulted in over 34,500 carers incurring fines last year.
Some of these carers were hit with large debts, with over 1,000 individuals owing £5,000 or more.
MPs criticized the harsh rules that led to unpaid carers being fined and even prosecuted for minor earnings infringements.
The Department for Work and Pensions (DWP) revealed that one in five carer's allowance claimants who worked part-time were overpaid in 2023-24, leading to significant debts for many.
This issue has been ongoing for five years, and ministers have failed to effectively address overpayments as promised.
MPs expressed concerns during a Westminster Hall debate, highlighting the injustices faced by unpaid carers.
The Guardian has reported on the hardship and distress faced by unpaid carers who have been fined or even prosecuted for minor breaches of carer's allowance earnings rules, despite owing only a few pounds.
The Department for Work and Pensions (DWP) has the technology to detect overpayments as they occur, but fails to investigate thousands of potential earnings breach notifications each month, allowing many to go undetected and accumulate into significant debts, which carers must eventually repay.