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Department for Work and Pensions Enhances Staffing to Address Carer’s Allowance Overpayments
The Department for Work and Pensions (DWP) is increasing its workforce to ensure thorough examination of all potential cases of Carer’s Allowance overpayments. This proactive approach aims to prevent financial burdens on caregivers who may have been overpaid for extended periods.
Many caregivers have found themselves in considerable debt, owing thousands as a result of repeated overpayments. While the DWP’s internal system is designed to identify potential overpayment cases, it has historically only reviewed about half of these alerts.
To rectify this, the department plans to bring on an additional 20 staff members to bolster the existing team of slightly more than 70, thereby aiming for comprehensive monitoring of all flagged cases.
The charity Carers UK has expressed approval for this initiative, suggesting it could help mitigate the risks of significant financial repercussions for caregivers. However, chief executive Helen Walker has cautioned that addressing the existing backlog could lead to a greater number of caregivers discovering they are facing debts due to past overpayments.
As of mid-February, the DWP’s records indicated 32,533 unresolved alerts. Projections suggest that an additional 99,000 alerts could emerge in the fiscal year 2025/26.
Recent data analysis revealed that among the investigated alerts, 28% resulted in no financial adjustments, 5% led to arrears being owed to caregivers, while a striking 67% uncovered instances of overpayments.
Individuals who provide at least 35 hours of care weekly to someone with an illness or disability may qualify for the allowance, currently set at £83.30 per week. However, eligibility hinges on weekly earnings not exceeding £196; even a mere pound above this threshold renders the caregiver ineligible for any payment.
Claimants are legally required to promptly notify the DWP of any changes in their circumstances. However, some caregivers have reported to the media that they were unaware of exceeding the earnings limit until notified years later, sometimes resulting in extensive repayment demands that they deemed “unfair.”
The DWP has faced backlash for its inability to avert these overpayments, despite the alerts in its system indicating when a claimant’s earnings surpass the allowable limit. Charitable organizations have urged the government to consider forgiving substantial existing overpayment debts, particularly where earlier notification might have been possible.
In response to these concerns, Sir Stephen Timms, Minister for Social Security and Disability, acknowledged the need to maintain a balance between recovering overpayments and ensuring fair repayment measures for caregivers.
Additionally, the DWP is exploring the potential implementation of a taper system that might encourage unpaid caregivers to engage in part-time work opportunities without losing their benefits.
Furthermore, an independent review regarding “earnings-related overpayments” has been initiated by the government, with findings expected this summer. This review aims to scrutinize how overpayments have transpired and to formulate strategies to support affected caregivers while minimizing the risk of future occurrences.
A spokesperson for the DWP stated, “Carers are unseen heroes, and we are committed to providing the largest increase in the Carer’s Allowance earnings threshold to ease their financial living conditions. We are also allocating additional staff to ensure that all under- and overpayments are promptly reviewed and addressed.” The department is prioritizing forming manageable repayment plans and directing individuals to independent advice services when issuing debt notifications. Ongoing trials involving text message reminders aim to enhance caregivers’ understanding of their responsibilities with respect to reporting any changes in their circumstances.
Source
www.bbc.com