The Department for Work and Pensions (DWP) must undergo a comprehensive overhaul in management and culture if it hopes to restore public confidence after the carer’s allowance scandal, a leading government adviser warns. Prof Liz Sayce, who led a critical review into the scandal, found that the DWP’s system and leadership failures caused carers to accumulate substantial debts unknowingly, with some cases contributing to severe mental health issues and even criminal convictions for fraud.
Sayce told the Guardian she was surprised by the department’s apparent lack of curiosity about the problems’ impact and its hesitation to address the issue strategically, despite having known about these problems for years. Her remarks followed reporting that a senior DWP civil servant, Neil Couling, had told staff that carers were to blame for the department’s failures in an internal message shortly after Sayce’s findings were published.
For Sayce, Couling’s remarks were distressing and, in her view, incorrect. The seven‑month review’s central conclusion was that a confusing and complex system—not individual carers—was to blame for the scandal, a point ministers accepted. Sayce described her reaction to Couling’s stance as deeply troubling, noting that many DWP workers are dedicated to doing the right thing.
She described a DWP with a “mixed culture”: some staff members eager to learn and improve, others more defensive of the organisation. She suggested it would be revealing to see which cultural strands prevail as the DWP rolls out in the new year a three‑year, £75 million program to re‑examine past overpayments and strengthen systems to prevent future injustices in carer’s allowance.
Last week, Welfare Secretary Pat McFadden rejected Couling’s assertion that individual carer failings were at the heart of the issue, effectively stating that his comments did not reflect the department’s position. McFadden pledged that the longstanding problems, left unaddressed by the previous government, would be fixed and that support would be provided to carers.
Sayce also praised a DWP whistleblower for his persistence in bringing the failures to light. She said the whistleblower’s testimony was crucial to the review and acknowledged the courage it takes to raise concerns within a large organisation.
The Sayce review, commissioned by the government after a Guardian investigation exposed punitive penalties of up to £20,000 imposed on unpaid carers who unknowingly accrued overpayments, concluded that the issue stemmed from systemic flaws rather than individual fault. Sayce noted the government’s acceptance of most of her 40 recommendations but called out the decision not to revise how carer’s allowance overpayments were recorded as a missed opportunity. She also lamented the lack of clearer guidance on allowable expenses that carers could offset against weekly earnings, which she said contributed to unintentional overpayments.
Regarding whether some unpaid carers may have ended up with a criminal record due to DWP failures, Sayce acknowledged that it was possible that some cases progressed to the Crown Prosecution Service and that some individuals may have pleaded guilty to avoid harsher sentences, even if they believed they had done nothing wrong. She described these as potential and troubling possibilities worth examining.
Sayce expressed cautious optimism about ministers’ commitment to addressing the carer’s allowance issues, noting that this marks a meaningful step forward. While acknowledging there is more work to do, she welcomed the clear political resolve to implement substantial changes.
Officials have ordered around 200,000 historical cases to be re‑assessed, with the expectation that about 26,000 carers will have debts cancelled or reduced. Sayce urged the DWP to be transparent about the criteria used in these assessments, arguing that openness is essential to rebuilding trust with carers.
Although Sayce did not name the whistleblower, reports indicate the individual was Enrico La Rocca, a junior official in the carer’s allowance unit whose warnings were reportedly ignored by senior management for years. La Rocca’s evidence contributed to MPs’ investigations into the carer’s allowance in 2019. The DWP’s permanent secretary, Sir Peter Schofield, faced renewed scrutiny over his role, including past failures to apologise to carers, though he later pledged to fix the overpayments problem and publicly expressed remorse. He was removed in 2020, reinstated in 2021 after MPs intervened, and again faced intervention as La Rocca’s evidence was brought forward this year.
A DWP spokesperson emphasised the department’s commitment to accountability and to rebuilding trust. They noted that most of Sayce’s recommendations have been accepted, that extra staff have been hired to prevent large debts from building up, that internal guidance has been updated, and that communications to carers have been clarified about what changes they must report. The department also pledged ongoing efforts to reassess affected cases and to potentially cancel, reduce, or refund debts for tens of thousands of carers, while continuing to modernise the benefit to prevent similar issues in the future.
