Hope for thousands hit by shock benefit repayment demands of up to £20,000 as DWP launches review --[Reported by Umva mag]

AN independent review brings fresh hope for thousands of carers forced to repay up to £20,000 worth of benefit payments.

Households on carer’s allowance continue to face substantial repayment demands after exceeding a critical weekly earnings limit.

Figures in August revealed that over 134,500 unpaid carers are collectively repaying £251million in benefit overpayments.

The Sun has previously highlighted cases where some individuals were required to repay up to £20,000 after unknowingly breaching carer’s allowance rules.

In an effort to reform the system and prevent more people from being caught out, the Department for Work and Pensions (DWP) has initiated an independent review on the matter today.

Carer’s allowance is paid to those providing at least 35 hours of unpaid care a week, in most cases to disabled or sick relatives.

It is currently paid at a weekly rate of £81.90, and anyone on the benefit can earn a second income from a job.

However, you can’t earn more than £151 a week, or you’ll lose all of your benefit allowance.

This is a different approach to other benefits, like Universal Credit, which has a tapered approach to earnings so that those working don’t lose all their money at once.

The DWP, which pays the benefit, also looks to get any overpaid benefits back.

So, if you breach the £151 a week “cliff edge”, you’ll also be forced to repay any carer’s allowance payments you’ve been issued.

But in some cases, Department for Work and Pensions (DWP) systems don’t flag earnings limit breaches for several years, seeing people overpaid massive sums that must be repaid.

In response to the overwhelming number of repayment demands issued to claimants, the DWP’s independent review, in collaboration with the former chief executive of Disability Rights UK, aims to investigate the causes and mechanisms behind the overpayments.

It will then recommend “operational changes” to minimise the risk of future overpayments and outline how the DWP can best support those affected by overpayment issues.

Commenting on the launch of the review Liz Kendall, work and pensions secretary, said: “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.”

Liz Sayce, chair of the review and former chief executive of Disability Rights UK, added: “My work aims to get to the bottom of how overpayments have occurred and how to prevent people who devote such time and care to others facing these difficulties in future.”

The outcome of the review will be published in due course, but for now, anyone hit with a repayment demand will still need to pay up.

A recent Sun Money investigation revealed that thousands of people on other benefits have been hit with repayment demands even though they do not owe a penny.

TOO LITTLE TOO LATE

According to the government, as of May 2024, there are 134,800 people with an outstanding carer’s allowance debt – a total value of £251m.

Carers reported receiving overpayments between £150 and £20,000, with the average overpayment being £4,000.  

There’s no time limit on how far back the DWP can go to spot erroneous carer’s allowance payments and demand money back.

Michael Clarke, head of information programmes, Turn2us said: “The launch of this independent review into carer’s allowance overpayments is a positive development towards addressing the unfair financial strain placed on many carers.

“However, we urgently need to support those currently affected by these issues and we urge the government to immediately put support in place to help them.”

Karina Moon, 62, is just one example of the thousands asked to repay the benefit.

The Department for Work and Pensions (DWP) told the single mother of one from North Wales that she must repay £11,292.75 of her carer’s allowance or face fraud charges.

In another shocking case, a father who looks after his ill son had to sell his home to pay back £20,000 in carer’s allowance.

George Henderson, 64, from Leyland in Lancashire, was told he would have to repay the eye-watering sum due to a mistake he made when first applying for the benefit.

Henderson wrongly ticked a box saying he was unemployed when, in fact, he was earning £7.50 an hour as a self-employed taxi driver.

However, the DWP failed to notify Henderson, blaming it his responsibility to notify the department of any changes in circumstances.

DON’T GET CAUGHT OUT

If you breach the £151 earnings limit, you should try and proactively report it to the DWP as it is classed as a change in circumstances.

You can report any change in circumstances online via the government’s website.

But you’ll need your National Insurance (NI) number to hand, details of the person you’re caring for and details of the change.

If you have been overpaid carer’s allowance, you must pay it back in full or in instalments via the DWP Debt Management platform.

This is also on the Government’s website.

If you don’t do this, the DWP can take deductions from your work salary or even pass your case on to a debt collector.

If you don’t engage with the debt collector, it may then take your case to the county courts.

You can dispute an overpayment if you disagree with it, but you’ll need evidence as to why you claim not to have overpaid.

You can do this through what’s known as a “mandatory reconsideration,” which you can submit to the DWP online, by phone, or by letter.

The decision letter you receive from the DWP will contain the specific contact details to which you must send correspondence.

Once the DWP has received your mandatory reconsideration, you will receive a “mandatory reconsideration notice” informing you whether it has changed its decision.

If you disagree with that outcome, you can appeal to the Social Security and Child Support Tribunal.

A judge will listen to both sides of the argument before making a decision.

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