Martin Lewis challenges Jeremy Hunt on GMB over carer's allowance loophole costing people £80 weekly

Martin Lewis has urged Chancellor Jeremy Hunt to fix a benefits loophole which results in some individuals missing out on over £80 every week. The founder of MoneySavingExpert made his plea to the chancellor live on Good Morning Britain on Tuesday, May 22, discussing the issue of carer's allowance.

This payment is accessible to those who provide care for someone requiring additional assistance. However, Lewis highlighted a current loophole in the system that causes anyone earning just a penny over £151 to lose the entire benefit, valued at £81.90 per week.

Lewis clarified to Jeremy Hunt, who was appearing on the show mere hours before Prime Minister Rishi Sunak announced a general election set for July 4, that this situation differs from other benefits which gradually decrease. This means that only a portion of the support is lost for each amount exceeding the allowance.

READ MORE Lidl giving away free Taylor Swift-themed merchandise this week

READ MORE Ruth Langsford gives Eamonn Holmes health update and adds 'it isn’t always easy'

He informed the chancellor that this issue is "affecting many people", with 130,000 individuals who have slightly exceeded the limit experiencing it being "have gone over by a little bit are seeing it clawed back". He labelled this as "ridiculous" and a "cliff edge."

"Will you fix the nonsense of carer's allowance that means you lose the entire benefit if you go a penny over? It is a disincentive to work, it's a disservice to carers in this country who are the backbone and essentially reduce the cost of the NHS and the state."

Mr Hunt acknowledged the vital role of carers, stating that "carers do an incredibly important job" and assured that he was "looking into the system to make sure people don't unintentionally claim [carer's allowance] when they're not entitled to it".

When Mr Lewis interrupted him to ask if he would review the benefit, Mr Hunt responded with "let me finish" before addressing the larger issue: "To answer your bigger question, do I want to make sure that we remove cliff edges in the tax system and the benefits system that stop people wanting to work? Yes."

He also mentioned that he had raised the threshold for repaying child benefits, reports Wales Online. "So of course, we'll continue to look at all measures that encourage people to get back into work," concluded Mr Hunt.