Last week, the Work and Pensions Select Committee, which Stephen chairs, called on the Government to improve how it monitors and communicates Carer’s Allowance overpayments, as unpaid carer’s are being forced to repay the DWP £250 million.
Carer’s allowance is a benefit given by the Government to people unable to work due to caring responsibilities. People who care for someone for at least 35 hours per week can receive £81.90 per week.
However, there is a strict earning’s limit on Carer’s Allowance that prevents anyone earning over £151 per week from receiving it. People who earn above the limit while claiming Carer’s Allowance must repay the difference.
Stephen’s committee found that many carer’s unwittingly earn above the limit - for example, due to uncertain working hours. The DWP often fails to alert carer’s that they have been overpaid, meaning they accrue large debts to the Government without realising. In 2022/23, 7,300 carer’s were repaying debts of over £2,000.
Stephen wrote to the Secretary of State for Work and Pensions, Mel Stride, on 15 May to urge him to improve the Government’s systems for preventing overpayments.
Speaking as chair of the committee, Stephen said, “the Government has known for years about flaws that have plagued the payments system for Carer’s Allowance but has 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.”