Government urged to ‘get a grip’ of carer overpayments issue

By Aine Fox, Reporter17th May 2024News EnglandCarers, News England, Welfare / Benefits

The Government must “get a grip of the problem” of overpayments to carers which have led to many unwittingly racking up unmanageable levels of debt, MPs have said.

Work and Pensions Committee chairman Sir Stephen Timms said the Government has “allowed” many unpaid carers to build up debt, having known about the issue for years.

A Department for Work and Pensions (DWP) research report, written in 2021 but only published this week, said 3% of their sample of claimants had received an overpayment of carer’s allowance, something Sir Stephen said had caused people “distress”.

With about 1.3 million people receiving carer’s allowance, the Carers Trust said this could equate to tens of thousands of people having been overpaid.

The report found that while almost seven in ten (68%) of their survey respondents had said they found it easy to resolve overpayments, others reported negative experiences.

It stated some had reported customer service agents treating them in a “cold” and “dismissive” way.

“When resolving overpayments, some claimants felt they were antagonised or were made to feel as they were ‘cheats’,” it added.

Sir Stephen said: “The Government has known for years about flaws that have plagued the payments system for carer’s allowance but has just allowed many unpaid carers to unwittingly rack up unmanageable levels of debt.

“The DWP must now move without delay to get a grip of the problem and ensure carers are no longer subjected to the distress that such overpayments can cause.

“On top of the problems with overpayments, we have heard how the rate of carer’s allowance leaves many struggling to make ends meet.

“The Government should make sure that carers who carry out their tasks without reward are made to feel valued by ensuring that the payment properly reflects living costs.”

Ramzi Suleiman, Carers Trust’s policy and public affairs manager, said: “This report shows how tens of thousands of people are falling foul of the carer’s allowance overpayment rules, often through innocent mistakes.

“When resolving overpayments, some claimants felt they were antagonised or made to feel as though they were ‘cheats’. But it’s no surprise these errors are made when the benefit is so overly complex, outdated and in dire need of reform.

“The DWP says carer’s allowance provides financial support and recognition for people unable to work full time because of their caring responsibilities. This report shows carer’s allowance is failing on its own terms.

“Over half of claimants live in a household with an income of less than £21,000. Only 16% were working full time, struggling to get by on an insultingly low benefit which they can’t claim if they earn more than £151 a week.

“The report shows more than half of claimants were caring for a staggering 65 hours or more a week while 40% had a health condition or illness themselves. It’s clear the carer’s allowance system simply isn’t doing its job for the UK’s hard-working unpaid carers. It needs an urgent overhaul.”

Helen Walker, chief executive at Carers UK, said she was pleased to see the DWP research “finally in the public domain” and added that it is now time for “constructive discussions” with decision-makers and officials about the future of the allowance which the charity argues is in need of a “substantial review”.

A DWP spokesperson said: “Carers across the UK are unsung heroes who make a huge difference to someone else’s life and we have increased carer’s allowance by almost £1,500 since 2010.

“We are progressing an enhanced notification strategy as part of our ongoing commitment to customer engagement, which will help ensure customers fulfil their obligations to inform DWP when changes in their circumstances have occurred, building on existing communications.

“We are committed to fairness in the welfare system, with safeguards in place for managing repayments, while protecting the public purse.”