2 weeks Ago By [email protected] (Jordan Coussins)
Households claiming Carer's Allowance have accumulated a staggering debt of £251.7million, according to The National Audit Office (NAO). This figure has seen a dramatic increase from £100million just six years ago.
Households eligible for Carer's Allowance can receive up to £81.90 per week from the government, provided they care for someone for at least 35 hours a week. However, there is an earnings limit set at £151 a week, beyond which the Department of Work and Pensions ( DWP ) will seek to recover the money.
Unlike other benefits such as Universal Credit , there is no gradual reduction in benefits with increased earnings. In some instances, the DWP does not notify claimants of exceeding the earnings limit until several years later, leading to substantial overpayments that need to be repaid. Read more: We checked out UK's biggest Primark before Christmas Failure to comply with the repayment process can result in court proceedings, further escalating costs.
The NAO has described these rules as creating a "cliff edge" where claimants are either entitled to all or none of the money. The NAO's figures reveal that the number of people with outstanding debt due to overpayment has been on the rise since 2018, increasing by almost three quarters from 80,169 people to 136,730 in 2023/24. The number of cases referred for prosecution in 2023/24 plummeted to just 54 from 246 in 2018/19, according to recent findings.
Meanwhile, administrative penalties, an alternative to prosecution, also saw a sharp decline, with only 75 issued compared to 774 in 2018/19. In contrast, civil penalties surged by around 50%, with 30,129 recorded up from 20,023 in 2018/19. The National Audit Office (NAO) noted that the Department for Work and Pensions (DWP) has the discretion to write off debt if it deems there’s no realistic chance of recovery or if a claimant has been deceased for over two years.
In a stark response, Carers UK chief executive Helen Walker labelled the report as "yet further evidence of a broken system that is failing unpaid carers". She highlighted the surge in individuals with unsettled debts as "a serious failure which has left thousands of carers experiencing emotional distress and financial hardship for years"..
