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

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

Draconian penalties levied on unpaid carers who unwittingly rack up “overpayments” running into thousands of pounds after falling foul of benefit rules are to be overhauled, the Guardian understands.

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