· Carers UK report is a dossier showing widespread evidence of the shocking impact Carer’s Allowance overpayments are having on carers’ lives and their ability to do paid work.
· Nearly 140 carers disclosed to Carers UK that they had been asked to pay back money after receiving an overpayment.
· Carers UK and unpaid carers will ask for swift action from the Government in a meeting with Sir Stephen Timms MP, Minister at the Department for Work and Pensions.
Unpaid carers will share the devastating impact of Carer’s Allowance overpayments on their lives in a report due to be handed to Sir Stephen Timms, the new Minister for Social Security and Disability at the Department for Work and Pensions (DWP) on Monday 29th July.
The new report is calling for swift action to prevent unpaid carers unwittingly building up huge debts after going over the earnings limit, which is causing financial hardship, anxiety and ill-health for unpaid carers.
Carer’s Allowance is the main benefit paid to carers who are unable to work full-time because of their caring responsibilities for disabled or ill people. Carers who are in receipt of Carer’s Allowance must not earn more than £151 per week (2024/25) after deductions. If a carer goes over this amount, even by a few pence, they lose their Carer’s Allowance entitlement and must repay the full amount at £81.90 per week.
Nearly 140 carers responded to a call out by Carers UK. A further 121 carers provided information about their experiences, with many saying that it had taken them years to pay back the debt or that they were still repaying it.
Most carers said they were unaware that they had gone over the earnings limit until they received notification of the overpayment, or had their benefit suspended – sometimes years later after they had been overpaid.
Fluctuating earnings, working extra on a shift to cover colleagues, receiving a pay rise or a minimum wage increase were all reasons given for overpayments, with many saying that the Carer’s Allowance earnings limit had affected their employment situation – causing them to cut back on hours, turn down pay rises or give up work completely.
63% of carers sharing their experiences said the DWP should make improvements to processes notifying claimants about earnings increases and potential overpayments. 75% said raising the earnings limit to at least 21 hours and pegging it to the National Living Wage would enable them to combine work and care more easily.
