Two Guardian journalists have been announced as this year’s winners of the Paul Foot Award with two hyperlocal contenders losing out.

Patrick Butler and Josh Halliday were named as winners of the prestigious journalism prize for their investigation into the carer’s allowance scandal.

The other shortlisted contenders inlcluded Abi Whistance of the Liverpool Post, who was nominated for her expose of a housing charity that left residents of its homes living in dire conditions.

And Jim Waterson, who set up Substack newsletter LondonCentric last year, was shortlisted for uncovering a spate of broken legs caused by the heavy frames of Califonian-made Lime electronic bikes falling on their riders.

The winners pictured with Private Eye editor Ian Hislop.

Also on the longlist, though not the final shortlist, was Jack Dulhanty and the team from the Manchester Mill who revealed how Sacha Lord, night-time economy adviser to Greater Manchester mayor Andy Burnham, received £400,000 of pandemic funding by rebranding his security company as an entertainment business.

The Guardian’s winning investigation uncovered how vulnerable carers were taken to court for accidentally claiming carer’s allowance while working part-time – even when some of them had reported their earnings to the DWP.

Since the investigation, Labour has set up an independent review into the system of carer’s allowance.

The winners’ announcement was made by Private Eye editor Ian Hislop, who said: “Who cares? That’s the big question in Britain today and those are the people the winners wrote about so brilliantly.”

Chair of judges Padraig Reidy added: “It’s a privilege for the judges to have a chance to spend serious time reading the UK’s best reporting.

“This year’s deserving winners, and the shortlisted reporters, all shared an admirable commitment to unearthing stories away from the daily grind of the news, setting the agenda instead of following it.”

Now in its 21st year, the award was set up in memory of renowned journalist Paul Foot who died in 2004, and recognises the UK’s most brilliant, talented and determined journalists working in the fields of investigative and campaigning journalism.