Carers UK is carrying out a three year project looking at some of the challenges that carers in employment can face when claiming Carer’s Allowance. This project is funded by the Lloyds Bank Foundation and it aims to influence national policy and practice in relation to Carer’s Allowance and help make the social security system work better for unpaid carers. In particular, we are keen to influence change in the following areas:
- The way in which the earnings threshold for Carer’s Allowance operates. Some carers face a harsh penalty when unintentionally going over the earnings threshold.
- The way in which carers interact with the Department for Work and Pensions when claiming Carer’s Allowance, particularly in relation to the earnings threshold.
Carers UK is conducting research to:
- Examine the evidence and rationale for change, informed by carers’ lived experiences.
- Develop a stronger evidence base for campaigning on this issue
- Improve information and advice for unpaid carers in relation to claiming Carer’s Allowance
- Develop learning materials and increased awareness amongst local carer.
Gathering our campaign evidence:
We’re gathering carers’ experiences of overpayments in relation to earnings and Carer’s Allowance here. They can be submitted by carers and advisers can add cases anonymously. This provides important evidence of why we need change as we want to see the system better meet carers' needs:
Report on Carer’s Allowance overpayments
On 29 July 2024, Carers UK was pleased to meet with two Ministers, Rt Hon Sir Stephen Timms MP, Minister for Social Security and Disability and Andrew Western MP, Minister for Transformation at the Department for Work and Pensions (DWP) to share our new report on Carer's Allowance overpayments. Ministers heard first-hand from four unpaid carers with experiences of overpayments.
A Private Notice Question was raised in the House of Lords on the same day, where Peers from all sides of the House spoke about how important it was that this issue is resolved.
Campaign successes
Carers UK gave oral evidence to the Work and Pensions Committee on their session covering Carer’s Allowance where we raised the issue of overpayments. Their letter to the DWP recommended:
“We remain concerned … that progress has not been made since our predecessor’s 2019 report [on overpayments]. DWP must undertake work to improve how it identifies and communicates overpayments with claimants. For example, DWP should send a communication to carers whenever the VEP system identifies that they are suspected of having exceeded the earnings limit—even if this might include allowable deductions… it is imperative that these changes are introduced without delay and without a lengthy process of trials.”
“DWP should set out to us how it defines “gainful employment” in the context of Carer’s Allowance. The Government should commit to introducing a taper rate to Carer’s Allowance when work on its IT system allows. This should include work to explore what impact different taper rates would have on earnings and work incentives for those in receipt of Carer’s Allowance.”
Following media interest in overpayments, Government published its plans to exploring the use of text messages and targeted communications to carers who might have gone over the earnings limit, using HMRC data already available to DWP. However, no timeline has been announced for implementation. DWP also published its research on Carer’s Allowance after a delay of several years.
Media
Carers UK has been working with a variety of journalists to raise awareness of the issue of Carer’s Allowance overpayments. Carers UK and unpaid carers have been featured on several programmes covering the story in recent months, including Good Morning Britain, Money Box live and BBC Breakfast. We have also been featured in the Guardian, local radio stations and regional news outlets.
Carers UK also issued a number of comments about Carer’s Allowance overpayments:
Carers UK to present Carer’s Allowance overpayments report to Minister detailing the experiences of unpaid carers, 29 July 2024
Carers UK respond to NAO letter to Work and Pensions Select Committee re Carers Allowance overpayments, 22 May 2024
Carers UK reaction to DWP research and Work and Pensions Select Committee recommendations on Carer’s Allowance, 16 May 2024
Carers UK reaction to DWP plans to text carers at risk of overpayments, 15 May 2024
Carers UK responds to Work and Pensions Committee discussion on Carer's Allowance, 24 April 2024
Support for Carers UK's Carer's Allowance overpayments campaign, 13 April 2024
Carers UK responds to news reports of Carer's Allowance overpayments case, 11 April 2024
Read our report on Carer's Allowance overpayments.
