{"id":109262,"date":"2025-05-20T11:30:00","date_gmt":"2025-05-20T10:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=109262"},"modified":"2025-05-20T10:52:49","modified_gmt":"2025-05-20T09:52:49","slug":"carers-hit-with-surprise-benefit-debts","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/carers-hit-with-surprise-benefit-debts\/","title":{"rendered":"Carers Hit With Surprise Benefit Debts After DWP Failures Dating Back to 2019"},"content":{"rendered":"\n<p>Unpaid carers claiming <strong>Carer\u2019s Allowance<\/strong>\u2014currently worth \u00a383.30 per week\u2014have found themselves liable for debts ranging from \u00a31,000 to more than \u00a320,000. These sums were accumulated over time due to errors in the Department\u2019s alert-handling systems.<\/p>\n\n\n\n<p>The situation stems from breaches of the benefit\u2019s earnings threshold, which many carers were unaware they had <strong>exceeded<\/strong>. Despite receiving thousands of automated alerts, the DWP reportedly failed to verify a large number of these cases in time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Systemic Failure to Address Alerts and Prevent Overpayments<\/strong><\/h2>\n\n\n\n<p>Data gathered by Carers UK shows that between 2018 and 2024, an estimated <strong>\u00a3357 million<\/strong> was incorrectly paid out to caregivers who no longer qualified due to earnings breaches.\u00a0<\/p>\n\n\n\n<p>In many cases, these <a href=\"https:\/\/en.econostrum.info\/uk\/carers-risk-losing-support-pip-ripple-dwp\/\" data-type=\"post\" data-id=\"108957\">carers <\/a>had minor violations of the earnings limit, yet continued receiving payments because the DWP did not respond promptly to system alerts.<\/p>\n\n\n\n<p>According to the advocacy group, only <strong>half of all alerts<\/strong> were processed using the DWP\u2019s own Verify Earnings and Pensions (VEP) system, allowing thousands of overpayments to continue unchecked. Carers, unaware of the breaches, only discovered the problem when faced with repayment demands\u2014sometimes years after the fact.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.carersuk.org\/press-releases\/carers-uk-director-emily-holzhausen-receives-cbe-for-her-dedication-in-championing-unpaid-carers\/\" target=\"_blank\" rel=\"noopener\">Emily Holzhausen<\/a>, Director of Policy at Carers UK, stated: \u201cUnpaid carers were falsely assured that the problem would be largely resolved in 2019. They deserve better.\u201d The organisation has called on the government to write off debts in cases where carers could not have reasonably known they were overpaid.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>DWP Response Under Scrutiny Amid Political Pressure<\/strong><\/h2>\n\n\n\n<p>In 2019, <a href=\"https:\/\/www.gov.uk\/government\/people\/peter-schofield\" target=\"_blank\" rel=\"noopener\"><strong>Sir Peter Schofield<\/strong><\/a>, Permanent Secretary at the DWP, told Parliament that new digital tools would prevent overpayments \u201cin some cases before they happen.\u201d Despite that promise, the issue persisted for several more years, fuelling criticism of the Department\u2019s internal controls and oversight.<\/p>\n\n\n\n<p>A DWP spokesperson has since confirmed that steps are being taken to improve the system, stating: \u201cAnd we are going further by increasing funding and bringing in more staff to check 100% of alerts to help prevent carers falling into debt.\u201d&nbsp;<\/p>\n\n\n\n<p>The department claims that the <strong>overpayment rate <\/strong>for Carer\u2019s Allowance is the lowest on record, and insists it is committed to preventing caregivers from falling into unmanageable debt.<\/p>\n\n\n\n<p>The issue has sparked wider political debate, with critics accusing Conservative-led administrations of mishandling the benefit system. One online commenter described the situation as \u201cjust another issue Labour are having to deal with.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A major oversight by the DWP has left thousands of carers with unexpected benefit debts. Many were unaware they had breached earning limits. The system failed to act, and now the fallout is landing squarely on unpaid carers. <\/p>\n","protected":false},"author":10,"featured_media":109264,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-109262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-welfare","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/109262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=109262"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/109262\/revisions"}],"predecessor-version":[{"id":109265,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/109262\/revisions\/109265"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/109264"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=109262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=109262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=109262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}