Ministers are retrieving over £250m from unpaid carers due to benefit infringements caused by government failures. More than 134,000 carers are repaying large sums of carer’s allowance, often due to no fault of their own, resulting in financial hardship and, in some cases, criminal convictions.
Despite promises to fix the issue five years ago, the Department for Work and Pensions (DWP) has failed to rectify the problem that prevents carers from being immediately alerted when they surpass the £151-a-week limit for carer’s allowance eligibility.
An investigation, previously blocked by the DWP, revealed the negative impacts of overpayments on carers. Stephen Timms has urged the National Audit Office to investigate these overpayments, stating it is a significant financial concern.
About 70% of overpayments occur when carers earn above the threshold while caring for loved ones. The debts, including some exceeding £20,000, have left carers in a distressing situation. Carers UK director Emily Holzhausen described the impact on carers as devastating, affecting their mental health and overall well-being.
The issue will be addressed by work and pensions secretary Mel Stride in an upcoming hearing. The DWP is working on enhancing notification strategies to improve customer engagement and avoid similar situations in the future.
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