Ministers admit carer’s allowance penalties will continue while review of more than 200,000 cases is carried out

Thousands of unpaid carers will continue to be hit with hefty and potentially unfair benefit repayment demands, it has emerged, as a government initiative gets under way to fix welfare injustices that have drawn comparison to the Post Office scandal.

Ministers will on Monday launch an audit of more than 200,000 historical carer’s allowance benefit cases, with an estimated 25,000 carers issued with unlawful overpayments since 2015 likely to see their repayment debts cancelled or reduced as a result.