DWP warns 130,000 people they are going to have to pay money back

The Department for Work and Pensions (DWP) has issued a warning that tens of thousands of people ae going to have to pay back money - totalling £250million. The repayments come after 130,000 people were accidentally overpaid, reports The Express.

Unpaid carers who provide care for someone for more than 35 hours a week are entitled to receive Carer's Allowance from the DWP, but they are only eligible if they earn less than £151 per week after tax. If this is exceeded they are no longer eligible - and will now have to repay any allowance received in full.

On Thursday, the Work and Pensions Committee warned there has "not been progress" in limiting the impact of the problems. Sir Stephen Timms, the committee chair, said the government "has known for years" about the issues, but had "just allowed many unpaid carers to unwittingly rack up unmanageable levels of debt".

"The DWP must now move without delay to get a grip of the problem and ensure carers are no longer subjected to the distress that such overpayments can cause," he said. The DWP has previously said that "claimants have a responsibility to inform DWP of any changes in their circumstances that could impact their award, and it is right that we recover taxpayers' money when this has not occurred".

But carers have said they were unaware they had exceeded the earnings limit, only to be informed years later they owed thousands. Karina Moon, whose daughter Amber requires round-the-clock care, owes £11,000 after earning slightly over the claim limit at her part-time supermarket job.

She has been paying back £60 a month for the last four years and will continue paying for another 11. "It takes money out of our income", she said, "it's money that would help me run the car, help pay bills, put food on the table".

Gina Price, from Carmarthenshire in south-west Wales, cared for her dad while working part-time at a petrol station. She now owes the DWP around £7,000 in overpayments, and said the debt was a "huge blow". The Department for Work and Pensions has said it is"progressing an enhanced notification strategy" to alert carers to overpayments.