Campaigners are up in arms after thousands of unpaid carers have been faced with prosecution over benefit overpayments.

Unpaid carers are having to repay benefit overpayments after unwittingly breaching “harsh earnings rules”.

The Guardian revealed the DWP had demanded repayments of sometimes thousands of pounds from carers who had breached the government earnings limit of £151 a week.

Helen Walker, chief executive of Carers UK, said the moves highlighted the need for a “wholescale reform and review” of Carer’s Allowance and other benefits.

“It’s shocking that there has been so little investment in the way that Carer’s Allowance is operated and the tight rules mean that many carers who need it, aren’t getting it,” Walker said.

“It’s even worse when you consider how much unpaid carers’ support is worth, which is billions every year.   

“We need the systems within Department for Work and Pensions to understand and tackle some of the challenges carers face in claiming benefits much better. We want to see the department’s research, which they commissioned several years ago and, despite repeated requests, has not been published.”

The story surfaced after the government announced unpaid carers would be entitled to five days’ unpaid leave.

A DWP spokesperson said: “We are committed to fairness in the welfare system, with safeguards in place for managing repayments, while protecting the public purse.

“Claimants have a responsibility to inform DWP of any changes in their circumstances that could impact their award, and it is right that we recover taxpayers’ money when this has not occurred.”