The UK’s carer’s allowance system has come under intense scrutiny as thousands of unpaid carers face mounting debts due to overpayment errors. Over 9,000 carers have been caught out in the past year alone, bringing the total number of individuals owing money to 144,000.
According to the latest figures, these unpaid carers, who look after disabled and ill loved ones, are being penalised for earning just above the threshold for part-time work while claiming benefits.
This mounting crisis has sparked widespread calls from charity groups and advocacy organisations for urgent reform of the system. Many unpaid carers already struggle to make ends meet, and the accumulation of significant debts is exacerbating their financial difficulties.
Critics argue that the rules, often described as draconian, are punishing the very people who play a vital role in caring for some of society’s most vulnerable individuals.
A Rigged System: The “Cliff-Edge” Rules
The issue lies within the “cliff-edge” earnings rule, which prevents carers from earning more than £151 per week in part-time jobs while still being eligible for carer’s allowance. According to The Guardian, a carer who exceeds this limit by just £1 can be required to repay far more than expected.
For instance, a carer who earns £1 more than the weekly threshold for 52 weeks may end up owing a staggering £4,258.80. In extreme cases, some carers face debts as high as £20,000, leading to calls for urgent reform of the system.
The consequences of these overpayments are severe, with more than 250 carers facing potential prosecution for debts exceeding £5,000. While the Department for Work and Pensions (DWP) has promised a review, the problem persists, and many carers are still left unaware of overpayments until they receive bills.
Advocacy groups, including Carers UK and Age UK, have urged ministers to suspend the practice until the review is concluded and to write off debts caused by system failures.
The Call for Immediate Action
Charities argue that immediate action is needed to prevent further hardship for unpaid carers, who are often already struggling financially. The ongoing financial strain impacts not only carers but their entire households, including disabled family members and children.
A letter signed by 108 organisations has called for the suspension of new overpayment debts while the independent review is underway.
According to Karina Moon, a carer who faces £11,000 in repayments, the current system is “disgusting” and continues to punish those who are already under extreme pressure. Moon, who works part-time at Tesco and provides 117 hours of care per week, highlights the paltry rate of carer’s allowance as a significant issue.
For her, the £81.90 per week amounts to less than £1 per hour for the demanding care she provides.
