Carer landed with £1,500 bill after DWP letter - as department admits 'mistakes'
An unpaid carer was astonished after receiving a letter from the Department for Work and Pensions (DWP) demanding £1,500 because she had exceeded the earnings threshold for Carer's Allowance due to "cliff edge" rules.
Emma Martin, who cares for her 27-year-old daughter Mia full-time and works part-time, shared with BBC Breakfast the shock she felt upon learning from the DWP about owing money because her income went slightly above the set limit.
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While carers are permitted to work and receive Carer's Allowance, they must not earn more than £151 weekly after deducting tax, National Insurance, pension contributions, and allowable expenses. Exceeding this limit by even as little as £1 means a complete loss of the entitlement.
Carers have spoken about the confusions regarding the earnings rule - its complexities are magnified when working hours or wages fluctuate. Critics question why carers aren't notified on surpassing the earnings limit, while the DWP maintains individuals must report any change in circumstances.
According to Emma: "Juggling work and full-time caring is hard enough in itself without having to worry about whether we're earning a few pence over and we're going to be penalised for it. It's a complex system that is broken and it's not fit for us, it's not fit for purpose. We have enough to deal with without having this on top of everything else as well."
"I didn't have any idea. I just got a letter through the post saying I owe around £1,500, from the DWP. That was really it. There was no support system in place, and obviously, at the time, you panic, and it's something that is really hard to get your head around. There is no one you can speak to about it. It's unfair and it's unreasonable."
She added: "Obviously, I had to pay it back. I borrowed money and with hindsight, I probably would have said to them that I can't afford to pay it back."
The Department for Work and Pensions (DWP) has initiated a fresh investigation into Carer's Allowance overpayments following an array of reports indicating some individuals being left in debt for thousands of pounds, and occasionally even ending up with a criminal record for benefit fraud. .
Our previous coverage highlighted the predicament of supermarket employee Helen Grater, who faced a demand to repay almost £6,000 after taking additional shifts at Sainsbury's while attending to her gravely ill partner. .
Moreover, full-time carer and father-of-three George Henderson encountered the harrowing choice of selling his house or facing imprisonment after being prosecuted due to receiving excess Carer's Allowance payments.
The upcoming review will concentrate on deciphering the reasons behind these substantial debts and determining what alterations are necessary to diminish future instances of overpayment. Another key aspect will be examining ways to offer better support to those burdened with such overpayments.
Work and Pensions Secretary, Liz Kendall MP, remarked: "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."
Meanwhile, Kirsty McHugh, Carers Trust chief executive, commented: "A review of Carer's Allowance overpayments is hugely welcome. Too many people have had their lives ruined by being pursued for huge sums of money simply because they made an honest mistake. These fines need to be written off and the systems allowing them to build up must be overhauled."