The Government is intensifying its scrutiny of Carer’s Allowance payments, prompting concerns among unpaid caregivers about potential debt accumulation and a lack of clarity within the system.
A recent policy shift by the Department for Work and Pensions (DWP) will see all earnings breach alerts related to Carer’s Allowance investigated – a significant increase from the previous practice of reviewing only half.
Carer’s Allowance, currently valued at £83.30 per week, is designed to support individuals dedicating at least 35 hours weekly to providing unpaid care. To qualify, recipients must maintain an income below £196 after deductions; even a minor exceedance of this limit triggers repayment of the full weekly benefit.
The current approach has created significant hardship for many unpaid carers, often juggling part-time employment with their caring responsibilities and potentially unaware of exceeding earnings limits. Delays in identifying these breaches by the DWP have resulted in substantial overpayments accumulating over extended periods, burdening families—including caregivers, their children, and disabled relatives.
Critics describe the previous system as a “lottery,” citing inconsistent notification timelines: some carers are alerted to potential issues promptly, while others unknowingly accrue years of overpayment – sometimes reaching sums as high as £20,000 – before facing unexpected repayment demands. For six years, the DWP’s partial investigation process contributed to widespread debt among caregivers.
According to figures from the National Audit Office, approximately 144,000 individuals are currently repaying over £250 million in overpayments.
“Currently carers can lose a year’s Carer’s Allowance (£4,331.60) for exceeding the earnings threshold by as little as £52 annually (£1 a week). Carers make an invaluable contribution, and the Government could be doing more to reduce the hardship they are facing because of a fundamentally unfair system.” – Helen Walker, Chief Executive of Carers UK
While campaigners acknowledge the DWP’s commitment to reviewing 100 per cent of alerts, concerns remain that this change may arrive too late for those already struggling with existing debts.
The DWP has stated it is increasing staffing levels to address a backlog of Carer’s Allowance cases. A spokesperson indicated:
- Affordable repayment plans will be offered.
- Individuals will be directed to independent advice services when debt management notifications are issued.
Despite these assurances, opposition leaders like Liberal Democrat leader Sir Ed Davey have called for a complete cancellation of existing debts, labeling the situation a “scandal.”
Social security minister Sir Stephen Timms, in correspondence with charities, confirmed there will be no pause on repayment demands or potential prosecutions during backlog clearance. He stated that reviewing all alerts “will allow us to tackle overpayments when they arise, rather than waiting until carers have built up large debts.”
Data from the 2021 Census reveals a significant number of people combining employment with unpaid care: nearly 2.5 million individuals in England and Wales provide unpaid care while employed, with 433,000 providing substantial care.
- Carers in employment are more likely to work part-time (38%) compared to non-carers (29%).
The shift towards a full review of alerts represents a potential improvement; however, the existing backlog and lack of leniency regarding accumulated debts continue to present challenges for unpaid caregivers.
