Money expert Martin Lewis has hit out at the DWP over major issues with Carer’s Allowance, as he says claimants have been unfairly treated amid an ‘overpayment crisis’
Money-saving guru Martin Lewis has blasted the Government for the “overpayment crisis” affecting DWP benefit claimants, particularly those receiving Carer’s Allowance. He described the situation as one where “stressed, overworked and vulnerable” individuals are forced to repay money when their income slightly exceeds the qualifying threshold—often without their knowledge.
Martin is now calling for urgent government action to prevent claimants from facing hefty repayment demands. Carer’s Allowance, which offers £82 a week, is available to those caring for someone at least 35 hours a week and earning less than £151 per week.
However, Martin highlighted a major flaw in the system on X: “Government’s just put out its Carer’s Allowance consultation remit. It’s worthy aim’s to examine how to stop the overpayment crisis that’s left 100,000+ unwittingly owing state money (due to crap systems).”
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He further expressed his concern that the consultation may not tackle the core issue: “Yet my concern is it mightn’t address the big issue, ie the hideous cliff-edge! Carer’s Allowance provides those on low income who care £82 a week income, but you can only get it if you earn under £151/wk.”
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He criticized the harsh cut-off point, saying, “Go 1p over that limit and you lose it all. That is perverse. Other benefits don’t work that way – they’re tapered.”, reports Birmingham Live.
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“And this is the clear cause of the problem (I’ve written to the Chancellor about it before). Overpayments happen because many carers are stressed overworked vulnerable people, if they get a slight pay uplift (eg minimum wage rise) and don’t notice, the benefits office keeps paying them.”
“So they could’ve earned 1p a week over for 10 weeks, then be asked to pay an unaffordable £820 back. I have put a question in to the consultation body to double-check that they are able to examine this, and hope they are, if not the whole thing would feel farcical. I will keep you up to date.”