DWP points key replace after demanding unpaid carers repay hundreds of kilos
The Government is launching a review into Carer’s Allowance overpayments after “thousands” of people were forced to pay back their benefits due to “innocent mistakes”.
The DWP announced the move this morning, with Work and Pensions secretary Liz Kendall noting concerns around carers who only breached earnings limit by a “small amount”. Earlier this year, it was revealed that scores of carers were being forced to repay their benefits after breaching the Carer’s Allowance rules. The benefit is worth £81.90 a week and is awarded if you care for someone at least 35 hours a week. You can work alongside it, but you cannot earn over £151 a week after tax, National Insurance, pension contributions, and allowable expenses.
If you do earn over this threshold then you lose your entitlement to the benefit and have to pay it back – even if it’s only by £1. Carers can also be prosecuted for the mistake. The review will specifically investigate the reasons why overpayments have occurred for some carers, look into “operational changes” which can help minimise future overpayment risks, and how the DWP can best support those with overpayments.
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The department confirmed that further details, including the timeline of the review, will be announced in “due course”.
The DWP confirmed that former Disability Rights UK Chief Executive Liz Sayce OBE, who is now a visiting professor in practice at the London School of Economics (LSE), would lead the review. On the appointment, Liz commented: “My work aims to get to the bottom of how overpayments have occurred and how to prevent people who devote such time and care to others facing these difficulties in future.”
Liz Kendall added: “I have been a lifelong champion of family carers and know many have been pushed to breaking point looking after the people they love. This is not okay. We’re determined to learn lessons and put this right. It’s brilliant that Liz Sayce has agreed to lead this with all the experience she brings.”
As of May 14 2024, the DWP was working to recover money from 134,800 people who claimed Carer’s Allowance. Official data also shows that 119 cases have gone to court in the last two years after being referred to the Crown Prosecution Service (CPS) by the DWP. Fellow carer and Liberal Democrat leader Ed Davey said it was a “disgrace” that carers were facing “an expensive fine or a criminal record, just for making an innocent mistake”.
