It has been revealed that ministers have recovered more than £250 million from unpaid carers over benefit breaches that occurred largely as a result of government failures.
More than 134,000 people who care for a loved one are forced to pay back often huge carer allowance overpayments. In many cases, debts arise through no fault of their own, leaving caregivers with huge debts, and some have been convicted of crimes.
Five years ago, the Department for Work and Pensions (DWP) promised to fix the problem of carers not being immediately notified if they were earning more than the £151-a-week limit to qualify for carer’s allowance.
But successive ministers have failed to resolve the issue, leaving tens of thousands of unpaid carers left alone. Britain could save £160bn a year And we will help sustain the NHS and social care services, which are facing financial hardship as they repay their debts.
Ministers were made aware of the negative financial and psychological impact that overpayments have on carers through initiatives such as: DWP commissioned research It was completed in 2021 but was blocked from publication for three years until it was finally published on Thursday after pressure from MPs and campaigners.
The Guardian has revealed how more than 134,000 unpaid carers are paying back huge fines, in some cases up to £20,000, as a result of the DWP’s failures. There are 156,000 outstanding carer allowance obligations, suggesting some carers are repaying multiple overpayments.
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Stephen Timms, chairman of the House of Commons work and pensions committee, on Saturday asked the government’s spending watchdog to renew its investigation into the scandal after ministers revealed the total amount recovered was £251m. requested.
He told the Guardian: “This is an astonishing amount of money that DWP should never have paid in the first place.
“These overpayments are causing great distress to carers, but there is also an issue of economic wealth here. This is reason enough for the National Audit Office (NAO) to review carer allowance overpayments. ”
The cross-party Commons Work and Pensions Committee wrote to the NAO last week, saying: “Given the scale of the problem, the lack of progress since 2019, and the cost to taxpayers of a system that fails to prevent or prevent the DWP. We have asked them to investigate and correct the overpayment. ”
According to official figures, around 70% of carer allowance overpayments occur when someone earns more than the £151-a-week limit (equivalent to 13 hours a week of the ‘National Living Wage’) while caring for a loved one. are doing.
In many cases, these overpayments have been allowed to accumulate over years, despite DWP promising in 2019 to immediately notify unpaid carers if they exceed the income threshold.
Emily Holzhausen, director of policy and communications at Carers UK, said huge sums of money were being taken from underpaid and exhausted unpaid carers, often through no fault of their own. He said it was “breathtaking and devastating” to watch.
“The impact on carers has been horrendous and their mental health has taken a serious hit, with some saying they are having to hit rock bottom,” she said.
Mr Holzhausen said unpaid carers suffered shame and “already have a difficult time” due to their debts. [role] Even more difficult. ” she added. “To some, this may feel like just a number. To us, it’s hundreds of thousands of caregivers whose lives have been negatively impacted.”
Work and Pensions Secretary Mel Stride will appear before MPs on the Work and Pensions Committee next week to be questioned about the growing scandal.
The overpayment occurs when a carer receives an allowance of £81.90 but breaches a government-imposed cap that says they cannot earn more than £151 a week in paid work. Instead of asking the carer to repay the amount he exceeded the threshold, the DWP will give him back the full £81.90 for each week he breached.
This means that a carer who earned £1 more than the £151 threshold in 52 weeks would normally have to repay £4,258.80 instead of £52.
The latest official figures show that dozens of these carers have repaid more than £20,000 each and 11,600 have repaid more than £5,000.
A DWP spokesperson said: “The total carer allowance overpayment includes past debts that the department is seeking to recover.” In contrast, carer allowance spending is expected to be £4.2bn this year alone.
“As part of our continued commitment to customer engagement, we are also strengthening our notification strategy, which will allow customers to build on their existing communications and increase their obligation to notify DWP when their circumstances change. We will be able to fulfill it with certainty.”
