24 April 2024 , 06:36
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The DWP has been urged to review the way it handles Carer’s Allowance after it emerged that thousands of people who care for others are being overpaid on their benefits and then months or years later receiving demands for repayment
The Department for Work and Pensions (DWP) is facing a storm of criticism as it has ordered 34,500 people to repay benefits, with fines reaching up to £20,000. This comes amid calls for the DWP to review its handling of Carer’s Allowance after it was revealed that thousands of carers are being overpaid and later hit with hefty repayment demands.
In a dramatic turn of events, a UK government dementia adviser has stepped down in protest against the DWP’s "beyond the pale" legal actions against carers who accidentally exceeded the £151 weekly earnings limit for receiving Carer’s Allowance. These carers, many of whom do not get paid for their caregiving, depend on the allowance to make ends meet and are now facing demands to return thousands of pounds.
Despite the DWP having systems in place to cross-check payments with earnings, shocking new data shows that around 34,500 individuals were overpaid last year, an increase from 30,700 the previous year. The Guardian reports that over 1,000 of these cases involve repayment requests ranging from £5,000 to £20,000. Carers earning just a penny more than the £151 weekly threshold are expected to refund the Carer’s Allowance received for that week. However, many beneficiaries argue that the regulations are not made clear.
In one extreme case highlighted by the Express, a 92 year old woman with advanced Parkinson’s Disease was sent a letter demanding the return of £7,000 in overpayments made by the DWP.
Johnny Timpson, the government adviser on dementia who resigned this week, has taken a stand after being appalled by reports in the Guardian detailing how tens of thousands already in dire straits are being hounded for thousands of pounds.
He expressed his dismay: "The fact that we have made absolutely no progress at all on social care [and] we really did not support carers adequately during the pandemic. But this latest thing the approach the DWP are taking to reclaim benefits from carers and people with disabilities, particularly with neurological disabilities is beyond the pale for me really."
In a shocking revelation, over 1,000 individuals were slapped with demands to repay Carer’s Allowance sums ranging from £5,000 to £20,000 last year, amounts which many low-income earners simply can’t afford. The M.E.N recently covered the story of a Lancashire man compelled to sell his house after being targeted by the DWP under the Proceeds of Crime Act - legislation usually used against drug traffickers and mobsters.
Ian Duncan Smith, the ex-Tory work and pensions secretary, is among the voices calling for the DWP to pause the repayment claims process and to "very carefully" scrutinise the situation. Speaking to the Guardian, the former Conservative leader said: "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. The fact that we have made absolutely no progress at all on social care [and] we really did not support carers adequately during the pandemic. But this latest thing the approach the DWP are taking to reclaim benefits from carers and people with disabilities, particularly with neurological disabilities is beyond the pale for me really.
"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."
A spokesperson for DWP stated: "Carers across the UK are unsung heroes who make a huge difference to someone else’s life and we have increased carer’s allowance by almost £1,500 since 2010."
They added: "Our most recent statistics show that carer’s allowance overpayments relating to earnings represents 2.1 per cent of the £3.3bn we spend supporting those who look after loved ones. Claimants have a responsibility to inform DWP of any changes in their circumstances that could impact their award, and with safeguards in place to manage repayments, this ensures fairness in our welfare system."