HELPING HAND
Hope for thousands hit by shock benefit repayment demands of up to £20,000 as DWP launches review
Plus, we've explained how to avoid falling into the trap
AN independent review brings fresh hope for thousands of carers forced to repay up to £20,000 worth of benefit payments.
Households on carer's allowance continue to face substantial repayment demands after exceeding a critical weekly earnings limit.
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Figures in August revealed that over 134,500 unpaid carers are collectively repaying £251million in benefit overpayments.
The Sun has previously highlighted cases where some individuals were required to repay up to £20,000 after unknowingly breaching carer's allowance rules.
In an effort to reform the system and prevent more people from being caught out, the Department for Work and Pensions (DWP) has initiated an independent review on the matter today.
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.
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It is currently paid at a weekly rate of £81.90, and anyone on the benefit can earn a second income from a job.
However, you can't earn more than £151 a week, or you'll lose all of your benefit allowance.
This is a different approach to other benefits, like Universal Credit, which has a tapered approach to earnings so that those working don't lose all their money at once.
The DWP, which pays the benefit, also looks to get any overpaid benefits back.
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So, if you breach the £151 a week "cliff edge", you'll also be forced to repay any carer's allowance payments you've been issued.
But in some cases, Department for Work and Pensions (DWP) systems don't flag earnings limit breaches for several years, seeing people overpaid massive sums that must be repaid.
Cash for Care
In response to the overwhelming number of repayment demands issued to claimants, the DWP's independent review, in collaboration with the former chief executive of Disability Rights UK, aims to investigate the causes and mechanisms behind the overpayments.
It will then recommend "operational changes" to minimise the risk of future overpayments and outline how the DWP can best support those affected by overpayment issues.
Commenting on the launch of the review Liz Kendall, work and pensions secretary, said: "I have been a lifelong champion of family carers and know many have been pushed to breaking point looking after the people they love.
"This is not okay. We're determined to learn lessons and put this right."
Liz Sayce, chair of the review and former chief executive of Disability Rights UK, added: "My work aims to get to the bottom of how overpayments have occurred and how to prevent people who devote such time and care to others facing these difficulties in future."
The outcome of the review will be published in due course, but for now, anyone hit with a repayment demand will still need to pay up.
A recent Sun Money investigation revealed that thousands of people on other benefits have been hit with repayment demands even though they do not owe a penny.
What is carer's allowance?
CARER'S allowance is a UK benefit designed to help people who have caring responsibilities for more than 35 hours each week.
Those eligible get £81.90 a week paid directly into bank accounts.
To qualify, the person you care for must already get one of these benefits:
- Personal independence payment (PIP) - daily living component
- Disability living allowance - the middle or highest care rate
- Attendance allowance
- Constant attendance allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
- Constant attendance allowance at the basic (full day) rate with a war disablement pension
- Armed forces independence payment
You don't have to be related to the person or live with them to apply.
But if you share caring responsibilities with someone else, only one of you can make a claim.
The type of care you provide can vary, but includes things such as helping with washing or cooking, taking the person to medical appointments or helping out with household tasks such as shopping or organising bills.
To get the benefit, you must also meet a certain set of criteria:
- You must be 16 or over
- You have to spend at least 35 hours a week caring for someone
- You need to have been in England, Scotland or Wales for at least two of the last three years (this does not apply if you’re a refugee or have humanitarian protection status)
- You must normally live in England, Scotland or Wales or live abroad as a member of the armed forces (you might still be eligible if you’re moving to or already living in an EEA country or Switzerland)
- You cannot be in full-time education
- You must not be studying for 21 hours a week or more
- You cannot be subject to immigration control
- You will also have to meet certain earnings criteria in order to get the benefit.
Your earnings must also be £151 or less a week after tax, National Insurance and expenses.
You can apply for the carer's allowance online by visiting www.gov.uk/carers-allowance/how-to-claim.
TOO LITTLE TOO LATE
According to the government, as of May 2024, there are 134,800 people with an outstanding carer's allowance debt – a total value of £251m.
Carers reported receiving overpayments between £150 and £20,000, with the average overpayment being £4,000.
There's no time limit on how far back the DWP can go to spot erroneous carer's allowance payments and demand money back.
Michael Clarke, head of information programmes, Turn2us said: "The launch of this independent review into carer's allowance overpayments is a positive development towards addressing the unfair financial strain placed on many carers.
"However, we urgently need to support those currently affected by these issues and we urge the government to immediately put support in place to help them."
Karina Moon, 62, is just one example of the thousands asked to repay the benefit.
The Department for Work and Pensions (DWP) told the single mother of one from North Wales that she must repay £11,292.75 of her carer's allowance or face fraud charges.
In another shocking case, a father who looks after his ill son had to sell his home to pay back £20,000 in carer's allowance.
George Henderson, 64, from Leyland in Lancashire, was told he would have to repay the eye-watering sum due to a mistake he made when first applying for the benefit.
Henderson wrongly ticked a box saying he was unemployed when, in fact, he was earning £7.50 an hour as a self-employed taxi driver.
However, the DWP failed to notify Henderson, blaming it his responsibility to notify the department of any changes in circumstances.
DON'T GET CAUGHT OUT
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.
If you have been overpaid carer's allowance, you must pay it back in full or in 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 disagree with it, but you'll need evidence as to why you claim not to have overpaid.
You can do this through what's known as a "mandatory reconsideration," which you can submit to the DWP online, by phone, or by letter.
The decision letter you receive from the DWP will contain the specific contact details to which you must send correspondence.
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.
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.
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