The DWP is to overhaul how it checks breaches of Carer’s Allowance rules – but claimants have been warned the scandal “is not over”, despite the DWP moving to clean up Carer’s Allowance
The Department for Work and Pensions is gearing up to revamp a third benefit, in addition to Universal Credit and Personal Independence Payment (PIP). However, claimants have been cautioned that the controversy “is not over”, despite the DWP’s efforts to rectify issues with Carer’s Allowance.
The DWP has unveiled a fresh approach to scrutinising breaches of Carer’s Allowance rules. The old regulations, which instructed officials to probe only half of alerts about suspected overpayments, are being scrapped.
Moving forward, all reports will be examined, enabling claimants to be informed and prevent falling into debt. In an editorial, the Guardian newspaper stated: “This terrible state of affairs should never have been allowed. It is a stain on the record of the last government that more was not done to sort it out.”
Carers in England and Wales who exceed earnings limits of £196 a week must repay the full £83.30 a week benefit payment. This means that going £1 a week over the limit for one year could result in the claimant facing a repayment demand of up to £4,330.
“As long ago as 2019, the National Audit Office discovered that most wrongful claims were due to errors. Given this, the DWP should have taken a proactive stance in addressing them, rather than insisting that claimants bore legal responsibility, or placing its trust in a technological solution that never came to fruition,” the newspaper warned, reports Birmingham Live.
Labour Party MP Sir Stephen Timms has sounded the alarm on the issue of carer’s allowance overpayments, revealing, “Carer’s allowance alerts have been coming in to the department, but many haven’t been processed. In future, we plan to act on all of them. This will be an important step in reducing overpayments.”
He further outlined the party’s commitment to reform, stating, “We are delivering on the change we promised when elected by drafting in extra staff. Reviewing 100% of alerts will allow us to tackle overpayments when they arise, rather than waiting until carers have built up large debts.”
A spokesperson for the Department for Work and Pensions (DWP) echoed this sentiment, confirming, “We are drafting in extra staff so the backlog of all under- and overpayments are investigated promptly and corrected.”
They also assured that the DWP is considering the financial wellbeing of claimants, adding, “We will agree affordable repayment plans and, when issuing debt management notifications, signpost to independent advice services.”
This initiative to revamp the carer’s benefit system comes amidst broader austerity measures, including cuts and reforms to Personal Independence Payment (PIP) and Universal Credit.
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