The government is presently attempting to recover almost £251 million from 138,000 carers. This information was revealed in a written parliamentary response and comes as ministers are being pushed to "get a grip on the problem," which has resulted in some of the most impoverished families incurring significant debts.
Carers Risk £1,900 Penalty Due to Benefit Eligibility Rules
Unpaid carers who offer more than 35 hours of care each week are eligible for the Carer's Allowance, according to current legislation. However, to qualify, they must earn less than £151 per week after taxes.
If their earnings surpass this limit owing to changes in circumstances, such as working overtime or receiving a tiny salary raise, they will lose qualification for the benefit and must repay any earned allowance in full.
The Department of Work and Pensions (DWP) announced that it was "progressing an enhanced notification strategy" to guide carers, as many are clueless when their weekly wages exceed the threshold.
The average DWP payment error is £1,900, however this figure includes anything from a single error, which costs a caregiver the weekly £81.90 benefit, to years of inaccuracies that have resulted in individuals losing their homes.
Debt Concerns Rise as DWP Reports Carer's Allowance Overpayments
A DWP study paper, written in 2021 but just published this week, found that 3% of their sample of beneficiaries had been overpaid the carer's allowance.
Sir Stephen Timms, head of the Commons Work and Pensions Committee, has accused the government of "allowing" many unpaid carers to build "unmanageable levels of debt", despite being aware of the situation for years.
The paper, titled 'Experience of Claiming and Receiving Carer's Allowance,' includes a number of case studies with affected carers who allege they were not notified of the overpayments at the time. Some stated that the situation was not revealed to them, and their benefit payments were cut or discontinued entirely.
One claimant expressed disappointment with being treated as a fraudster and feeling ignored. He stated: "I fought hammer and nail on it. I felt it was a real victimisation. They don't think... It's like you're dealing with a computer, not a person."
"I ended up with a big overpayment, but it totally wasn't my fault. It's like they don't believe you."
A spokesperson for the DWP replied: "The total amount of carer's allowance overpayments includes historical debts which the department is seeking to recover."
"In comparison, carer's allowance expenditure is forecast to be £4.2billion this year alone."
"We are also 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."
Sir Stephen said: "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."