Hundreds of thousands of people claiming benefits from the DWP have been hit with an unexpected bill, facing debts of £20,000.
DWP Seeks Repayments from Carers Over Benefit Overpayments
As of May 2024, around 134,800 people had to repay Carer's Allowance to the DWP due to overpayments. As reported by The Express.
Carers UK has highlighted the issue in a new report, where carers shared that their debt range from £150 to £20,000 with the average amount owed £4,000.
The majority of the overpayments are due to carers exceeding the earnings limit for the benefit, with Carers UK cautioning that this is often linked to a lack of understanding of the rules among many claimants.
To qualify for the benefit, your weekly income must not exceed £151 after tax, National Insurance and expenses have been deducted.
If your income exceeds this amount you must pay back the benefit entirely, which currently equals £81.90 a week, or £4,258.80 a year.
What makes carers usually go over the earnings limit is either unstable earnings, pay rises, or mistakes some employers make, including delaying their payment dates.
The study included: “Many carers reported that it took years to pay back the debt, and many were still in the process of paying it back.
“Some had left employment due to the stress, strain and fear of having another overpayment only to be living on a reduced income as well as having to pay off the overpayment debt.
“For others, Carer’s Allowance was stopped without warning causing them severe financial difficulties. This is on top of significant unpaid caring responsibilities for older, ill or disabled relatives.”
Carers Voice Concerns Over DWP Repayments
Carer's Allowance helps those who care for someone for a minimum of 35 hours a week, if the person they care for qualifies for certain benefits, like PIP or Attendance Allowance.
One carer expressed their frustration about the 'threatening' letters they receive from the DWP about the repayments. Stating: “It pushed me over the edge as the letters were very threatening and on top of my caring responsibilities it made me ill.
“I was scared and felt under constant threat from debt collectors and being taken to court.”
Carers UK is pushing for an increase in Carer's Allowance of at least £11.10 per week, as well as the earnings standard to be in sync with 21 hours a week at the National Living Wage.
This would raise the earnings cap from the existing £151 per week to £180.60 per week for claimants aged 18 to 20, and £240.24 per week for claimants aged 21 and up.
A question was asked in Parliament for Lord Bishop Christopher Chessun, the Bishop of Southwark, regarding whether the Government had considered the report.
Baronness Maeve Sherlock responded saying: “The Government welcomes the report published by Carers UK, and is considering its findings.
“Ministers were pleased to meet with the organisation, and with carers, to discuss the issues raised shortly after publication of the report.
“More broadly, in respect of overpayments of Carer’s Allowance, the Government is moving quickly to understand exactly what has gone wrong so that it can set out its plan to put things right.”