The Department for Work and Pensions (DWP) has issued a timely reminder to individuals receiving Carer’s Allowance.
According to Manchester Evening News, with a rise in the earnings threshold slated for April 2025, claimants are urged to keep their financial details up-to-date to avoid overpayments. The department stresses that those who exceed the earnings cap without reporting the change may face repayment demands.
Importance of Updating Earnings Details
Claimants of Carer’s Allowance have a clear responsibility to inform the DWP of any change in their circumstances. This includes reporting any increase in weekly income, as failing to do so could result in overpayments.
Currently, the earnings threshold is set at £151 per week, and exceeding this can lead to repayments, which has affected nearly 100,000 carers across the UK.
Out of the 143,922 carers with outstanding Carer’s Allowance debts, approximately 99,349 cases are due to overpayments because earnings exceeded the current £151 weekly income limit. This accounts for around 60% of all Carer’s Allowance debt, highlighting the importance of reporting any changes in income.
Those who earn above the threshold and fail to notify the DWP may be required to repay the excess amount, which has caused financial strain for many carers.
The DWP has emphasised the need for claimants to understand their responsibility to update their earnings information regularly. The department encourages claimants to be proactive in keeping the DWP informed of changes that could impact their benefits.
Failure to report earnings could result in significant financial consequences, with repayments being required if overpayments occur.
Significant Rise in Earnings Threshold
In response to concerns regarding the sustainability of Carer’s Allowance amidst inflation and rising living costs, the DWP is set to increase the weekly earnings threshold for claimants. Starting April 2025, the threshold will increase by £45, raising it to £196 per week. This adjustment is expected to benefit more than 60,000 carers by 2029/30, marking the biggest-ever cash increase in the earnings threshold.
This increase is aimed at providing additional financial support to carers, many of whom face rising living costs while continuing to care for vulnerable individuals. While this rise is seen as a step forward, it also reinforces the ongoing responsibility of claimants to monitor and report any changes in their financial situation.
The DWP has reiterated that carers must be aware of their entitlements and duties in relation to Carer’s Allowance, as failing to comply with reporting requirements can still lead to repayment obligations.
DWP Launches Review on Overpayment Causes
To tackle the issue of overpayments, the DWP has initiated an independent review into the causes and consequences of carers exceeding the earnings threshold. The review aims to uncover the underlying issues, including how overpayments occur and the best ways the DWP can support affected claimants.
The findings are expected to be presented by early summer 2025. This review will examine how the DWP can better communicate with carers to ensure they are fully aware of their reporting responsibilities. The department is also exploring ways to prevent overpayments from occurring in the future.
By identifying the root causes of the overpayments, the review aims to make recommendations for improving the overall process and providing more comprehensive support to those affected.
