BENEFIT BLOW
Warning for tens of thousands on benefits ‘unwittingly’ breaking rules that could land them with £20k bill
We reveal what to do if you're affected and how to avoid it
TENS of thousands on benefits are having to pay back as much as £20,000 after unknowingly breaching Government rules.
Households on Carer's Allowance are forking out huge sums after going over a weekly earnings limit.
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Carer's Allowance is paid to those providing at least 35 hours of unpaid care a week, in most cases to disabled or sick relatives.
It is currently paid at a weekly rate of £81.90 and anyone on the benefit is allowed to have a second income from a job.
But, as it stands, you can't earn more than £151 a week, or you lose all of your benefit allowance.
The Department for Work and Pensions (DWP), which pays the benefit, also looks to get any overpaid benefits back.
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But in some cases DWP's systems don't flag earnings limit breaches for several years, seeing people overpaid massive sums which have to be repaid.
If you don't engage with the repayment process, you can even be taken to county court.
In 2022-23, 26,700 carers were asked to repay sums relating to earnings breaches.
More than 800 were repaying sums between £5,000 and £20,000, and 36 were repaying more than £20,000, .
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One such case of someone having to pay back thousands of pounds was Vivienne Groom, who last year was prosecuted for failing to declare her minimum wage Co-op job while caring for her mum, and forced to pay back £16,000.
Dominic Carter, director of policy and public affairs at Carer's Trust, said: "It’s nothing short of cruel to ruthlessly pursue thousands of dedicated carers who have unwittingly over-claimed Carer’s Allowance.
“Carer’s Allowance is the lowest benefit of its kind at just £81.90 a week. Not only that, it also comes with a bewildering range of rules."
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Fears have been raised the earnings threshold sees undue pressure put on carer's who are already struggling financially.
A recent DWP Family Resource Survey (FRS) found 21% of households with an adult carer was living on less than the average UK income.
And 5% of those receiving Carer's Allowance had used a food bank in the last 30 days, compared to only 1% of the wider population.
Dominic added: "Carers Trust research shows nearly two-thirds of unpaid carers have had to give up work completely or cut back on their working hours because of the pressures they face.
"It’s no wonder so many dedicated carers are both falling into poverty and falling foul of this grossly unfair and over-complicated system."
A spokesperson for the DWP said: "We are committed to fairness in the welfare system, with safeguards in place for managing repayments, while protecting the public purse.
"Claimants have a responsibility to inform DWP of any changes in their circumstances that could impact their award, and it is right that we recover taxpayers’ money when this has not occurred."
What to do if you breach the earnings limit
If you breach the £151 earnings limit, you should try and proactively report it to the DWP as it is classed as a change in circumstances.
You can report any change in circumstances online via the Government's website.
But you'll need your National Insurance (NI) number to hand, details of the person you're caring for and details of the change.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity works out what you could get.
Entitledto's determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
If you have been overpaid Carer's Allowance, you will have to pay it back in full or instalments via the DWP Debt Management platform.
This is also on the Government's website.
If you don't do this, the DWP can take deductions from your work salary, or even pass your case on to a debt collector.
If you don't engage with the debt collector, it may then take your case to the county courts.
You can dispute an overpayment if you don't agree with it, but you'll need evidence as to why you claim to not have overpaid.
You can do this via what's known as a "mandatory reconsideration", which you can submit to the DWP online, via phone or by letter.
The specific contact details you'll need to send any correspondence to will be on the decision letter you receive from the DWP.
Once the DWP has received your mandatory reconsideration, you will receive a "mandatory reconsideration notice" informing you whether it has changed its decision.
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If you disagree with that outcome, you can appeal to the Social Security and Child Support Tribunal.
A judge will listen to both sides of the argument before making a decision.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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