DWP urged to launch immediate review as some forced to repay thousands in benefits

The Department for Work and Pensions (DWP) is being urged to launch a review after thousands of carers were found to have been overpaid and asked to hand money back.

A wave of MPs, charities, and other organisations have raised concerns after it was found that thousands of carers were forced to repay part of their Carer's Allowance due to severe payment errors. The DWP was criticised for using 'threatening and cruel' tactics against unpaid carers, with the threat of even higher fines if they challenge any penalties.

According to The Guardian, the DWP is warning carers that contesting a repayment could result in increased fines following an appeal. Carers are reportedly feeling powerless in the face of fines worth thousands of pounds over honest mistakes that could have been spotted sooner.

Read more: DWP to get further powers on top of monitoring bank accounts to tackle benefit fraud

Unpaid carers are entitled to £81.90 a week in Carer's Allowance if they provide at least 35 hours of care per week. They are permitted to work, but their earnings must not surpass £151 a week after tax and expenses.

If the £151 weekly earnings threshold is exceeded by even just 1p, they are required to repay the entire week's Carer's Allowance for the entire duration they were in breach of the rules. This policy has been criticised by some as a "cliff edge" tactic.

Some carers have fallen foul of the rules unknowingly, and are only being informed of the breach years later by the DWP, despite modern technology that could have flagged the issue earlier on. Former Tory work and pensions secretary Ian Duncan Smith has urged the DWP to "pause" the overpayment claim process and "very carefully" review the issue.

The former Tory leader told the Guardian: "The best thing is for the DWP now to pause any of these demands, review carefully what was behind all of this to make sure this was not mistakes by DWP but is genuinely about individuals failing to notify the department."

Meanwhile, Carers UK has launched a manifesto in which it demands Carer's Allowance to increase by at least £11.10 a week and pullback the strict payment rules.

Helen Walker, Chief Executive of Carers UK said, “It’s time that the next Government redefined its relationship with unpaid carers and delivered a social contract that they can rely on. They do so much saving the state billions and yet feel they get very little in return in terms of recognition and support.

“The fact that Carer’s Allowance is worth only £81.90 per week for a minimum of 35 hours care and is the lowest benefit of its kind speaks volumes. It’s unacceptable that carers are reaching breaking point and don’t receive the support they desperately need. The next Government must do more to help families so that 600 people a day don’t have to give up work to care.

“We want political parties to set out their social contract with unpaid carers and commit to a funded, cross-government 10-year National Carers Strategy. We know that if unpaid carers were better supported it would benefit their lives - removing unnecessary pressure on their relationships, preventing poverty, improving their health and ensuring those who can, and want to, remain in work. We see investing in unpaid carers and care as a win:win, for families, society and the economy.”