100,000 unpaid carers paying off 'cliff-edge' benefits debt to DWP

Yahoo

25-02-2025

Newly released government figures suggest that there are still nearly 100,000 unpaid carers across the UK still are repaying carer's allowance debts.
The numbers, revealed in a written question to the government on Monday, show that 99,349 of carer's allowance claimants need to repay the government because their earnings were over the carer's allowance limit.
Under current rules, unpaid carers who look after someone for more than 35 hours a week can claim the allowance of up to £151 per week. However, if carers are found to go over this limit by just a few pence, they need to pay back 100% of their allowance for that week - which is currently £81.90.
In some cases, carers were overpaid by the department of work and pensions without being notified, leaving them with up to £20,000 in debt.
The issue has sparked anger among campaigners. While the government has pledged to investigate the impact of the cliff edge, some unpaid carers are still facing "unforgivable" legal action over their debts.
The written question, from DUP MP Jim Shannon, asked how many carers have an overpayment debt as a result of breaching the earnings limit.
Andrew Weston, a DWP minister, said that 143,922 across the UK overall had an outstanding carer's allowance debt.
However, Weston said the table "will include people who are no longer receiving carer's allowance, people who are no longer carers and people who made fraudulent claims and were never entitled to carer's allowance."
Postcode area
Volume of customers with an outstanding CA debt
Volume of Customers with an outstanding debt with the r-referral overpayment reason of 'earnings over CA limit'
English postcode
116,874
81,503
Welsh postcode
7,657
5,359
Scottish postcode
13,922
9,112
Northern-Irish postcode
5,469
3,375
He added that, from April, the government will boost the carer's allowance earnings threshold by £45 a week to £196.
"This is the biggest ever cash increase in the earnings threshold for carer's allowance, benefitting more than 60,000 carers by 2029/30," he added.
Over a six-year period, outstanding carer's allowance overpayment debt affecting more than 130,000 people has risen by £100m to more than £250m.
In December 2024, a report by the National Audit Office public spending watchdog found that the number of people with outstanding debt has risen every year since 2018, and was up from 80,169 people to 136,730 in 2023/24.
In its report, the NAO noted the so-called 'cliff edge' created by the current rules, meaning a claimant – who by law must inform DWP promptly if their circumstances change – is either entitled to the whole allowance or none of it, and said this can 'quickly build up significant overpayments'.
The report stated: 'This means it is important to identify an overpayment early or, better still, prevent it from occurring.'
In October 2024, the government announced it was launching a review into the issue, looking at overpayments; what changes can be made to reduce the risk of more carers being affected; and what the department can do to support carers already in debt.
The Carers UK charity has called for a prompt implementation of reforms to address systemic issues in the way carer's allowance is paid.
In a report it presented to the government last July, carers told the charity they had received overpayments between £150 and £20,000, with the average overpayment being £4,000.
As a consequence, it warned, carers are left repaying debts over many years, causing many financial difficulties as well as having a significant impact on their mental health.
A DWP spokesperson told Yahoo News: 'Where overpayments do occur, the Department has a duty to the taxpayer to protect public funds and to ask for money to be paid back. We remain committed to working with anyone who is struggling with their repayment terms and will always look to negotiate sustainable and affordable repayment plans.'