16 May 2024 , 11:34
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The Department for Work and Pensions (DWP) has been told to “improve urgently” how it deals with Carer’s Allowance overpayments following a string of reports where people have been found to owe thousands of pounds.
The Work and Pensions Committee has published a letter to Mel Stride MP, Work and Pensions Secretary of State, highlighting the "mental distress" experienced by some claimants. Charities who support carers say the rules for how much you earn while claiming Carer's Allowance can be confusing - particularly if your hours change, or your pay increases or fluctuates.
They have also raised questions as to why, in some cases, it has taken the DWP several years to spot overpayments - leaving some families having to pay back thousands of pounds. The earnings limit while claiming Carer's Allowance is currently just £151 a week after tax, National Insurance, pension contributions and allowable expenses.
If your earnings go over the limit - even by just £1 - you lose your entitlement to Carer's Allowance. Most people claiming Carer's Allowance are from low income households and are caring for sick and disabled relatives. There have been dozens of reports recently which have highlighted cases where carers have been demanded to pay money back to the DWP.
Have you been forced to repay Carer's Allowance? Let us know: mirror.money.saving@mirror.co.uk
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Supermarket worker Helen Grater was told to pay back almost £6,000 after she took on an extra shift at Sainsbury’s while caring for her seriously unwell partner. Full-time carer and dad-of-three George Henderson was forced to sell his home - or face jail - after he was prosecuted because he was overpaid Carer’s Allowance.
The Government this week announced plans to consider contacting claimants through e-mail and text messages, but the Work and Pensions Committee today urged that these changes are introduced without delay. Carer's Allowance is worth £81.90 a week and is awarded if you care for someone at least 35 hours a week. The person you care for must also be claiming certain benefits, such as Personal Independence Payment.
Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “The Government has known for years about flaws that have plagued the payments system for Carer’s Allowance but has just allowed many unpaid carers to unwittingly rack up unmanageable levels of debt. The DWP must now move without delay to get a grip of the problem and ensure carers are no longer subjected to the distress that such overpayments can cause.
“On top of the problems with overpayments, we have heard how the rate of Carer’s Allowance leaves many struggling to make ends meet. The Government should make sure that carers who carry out their tasks without reward are made to feel valued by ensuring that the payment properly reflects living costs.”
A DWP spokesperson said: “Carers across the UK are unsung heroes who make a huge difference to someone else’s life and we have increased Carer's Allowance by almost £1,500 since 2010. We are progressing an enhanced notification strategy as part of our ongoing commitment to customer engagement, which will help ensure customers fulfil their obligations to inform DWP when changes in their circumstances have occurred, building on existing communications. We are committed to fairness in the welfare system, with safeguards in place for managing repayments, while protecting the public purse.”