· 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.
Earlier this year, Sir Stephen Timms, who previously chaired the cross-party Commons Work and Pensions Select Committee, called for issues leaving unpaid carers with large debts to be fixed without delay. Prior to the election, Liz Kendall, now the Secretary of State for Work and Pensions, also vowed to investigate Carer’s Allowance overpayments.
Elizabeth Tait, an unpaid carer from Thames Ditton, was shocked to receive a letter asking for her to repay £1,623 to DWP whilst she was caring for her husband and her son alongside working varied hours part-time as a supply teacher.
She said: “I was worried about my husband’s declining health and having to pay back the Carer’s Allowance caused me a great deal of upset and worry. Carer’s Allowance is almost like a trap. It’s so complicated and needs to be more straightforward.
“I didn’t work or earn much while caring for my ill husband and looking after my son. It was such a shock when I ended up with a bill of £1,623. I was surprised that I was not even given a warning. Now, I am terrified of asking for support and do not claim Carer’s Allowance.
“I am a carer, single parent, widow and not on benefits – what am I supposed to do? My late husband left just enough for us to get by, but it isn’t easy. I work ad-hoc as a private tutor to fit in around my caring role for my son. The system really needs to change, so that people like me do not suffer needlessly when they are seeking support.”
Helen Walker, chief executive of Carers UK, said:
“We’re pleased that Sir Stephen Timms is listening to carers and taking this opportunity to meet with us. We are providing widespread evidence of the devastating impact this is having on thousands of carers’ lives and feel encouraged that he has a good understanding of the key issues involved.
“Caring often limits your ability to earn a full income and adds to extra costs that you would not otherwise have. It’s a scandal that so many carers, who have unwittingly received overpayments, are facing additional stress and anxiety. Many are under huge pressure already and in precarious financial positions due to their caring role.
“It is heart-breaking to hear of instances where thousands of pounds of debts have been accumulated. This has been going on for years and not enough has been done by Government to fundamentally change the situation. It simply cannot continue.
“Up to 600 carers leave paid work every day. Many carers have told us they have left their employment as a result of receiving an overpayment and many more have had to cut back on their hours and turn down pay rises due to the earnings limit and the fear of getting another overpayment.
“We should be supporting and encouraging as many carers as possible to continue with their paid work alongside their caring role, where they are able to do so. Carers UK will continue to campaign for wider reform and review of Carer’s Allowance, bringing carers’ voices and experiences directly to decision makers and officials to call for urgent and lasting change.”
