The update came from a parliamentary debate on Monday, October 7, which focused on Carer’s Allowance overpayments and what the DWP was doing to tackle the problem
The Department for Work and Pensions (DWP) has shared a new update on its plan to tackle benefit overpayments with text message warnings.
The update came from a parliamentary debate on Monday, October 7, which focused on Carer’s Allowance overpayments. Earlier this year, dozens of reports came to light from carers having to pay thousands of pounds back to the DWP after the benefits department overpaid them.
The earnings limit while claiming Carer’s Allowance is currently just £151 a week after tax, National Insurance, pension contributions and allowable expenses. If your earnings go over the limit – even by just £1 – you lose your entitlement to Carer’s Allowance. If you then continue to receive the benefit payments, you will have to pay them back to the DWP.
Figures released in May this year shows unpaid carers must repay more than £250million after many were unknowingly overpaid their allowance – with the DWP seeking to recover money from more than 134,000 carers. Earlier this year, the Work and Pensions Committee published a letter to the former DWP minister Mel Stride highlighting the “mental distress” experienced by some claimants who faced this problem and called on the department to fix the issue.
In Monday’s debate, Labour’s Work and Pensioners Minister, Sir Stephen Timms, said the department was reviewing ways to prevent the overpayments from happening. An idea that the DWP began to trial earlier this year was a text alert service. This would send a message to claimants who had surpassed the earnings limit.
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The update came in response to Labour MP for Shipley Anna Dixon, who asked what steps the DWP were taking to tackle the issue. Sir Stephen said: “The work of unpaid carers is absolutely vital and often heroic. We are determined to give unpaid carers the support they need. We are looking at the moment at options on tackling the problem with overpayments, including the possible introduction of a text alert service.”
Sir Stephen said the pilot scheme involved 3,500 claimants, and the message was sent when HMRC informed the DWP that the claimants had breached the limit. The DWP minister said the benefits department is now looking at the results and “if positive” than the pilot could be rolled out further. He said: “We are currently looking at the results, and if they are positive, that will be the first step towards addressing the overpayment problem. We will need to do more, but it will be a good first step.”
“There is a good deal of anxiety about these overpayment problems. We hope that the alert service will at least inform people when they run into a problem so that they do not then develop a large overpayment, which has happened all too often in the past, but we also need to look at the other arrangements relating to carer’s allowance in order to provide the reassurance.”
Carer’s Allowance is worth £81.90 a week and is awarded if you care for someone at least 35 hours a week. The person you care for must also claim certain benefits, such as personal independence payment.