Emma Martin is a full-time carer for her daughter, Mia, but was left shocked when she received a letter from the DWP saying she had gone over the earnings threshold for Carer’s Allowance
An unpaid carer has explained how she received a letter out of the blue from the Department for Work and Pensions (DWP) saying she owed £1,500 due to “cliff edge” rules about Carer’s Allowance.
Emma Martin is a full-time carer for her daughter, Mia, 27, and worked part-time while also claiming Carer’s Allowance. But she told BBC Breakfast how she was left shocked when she received a letter from the DWP saying she had gone over the earnings threshold for Carer’s Allowance – and had to pay the money back.
You’re allowed to work while claiming Carer’s Allowance – but there is an earnings limit of 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 entire entitlement to Carer’s Allowance.
Carers say the rules for how much you earn can be confusing – particularly if your hours change, or your pay increases. There have also been questions raised about why carers aren’t alerted when they go over the earnings threshold. The DWP argues that it is down to claimants to report a change of circumstances.
Emma said: “Juggling work and full-time caring is hard enough in itself without having to worry about whether we’re earning a few pence over and we’re going to be penalised for it. It’s a complex system that is broken and it’s not fit for us, it’s not fit for purpose. We have enough to deal with without having this on top of everything else as well.
“I didn’t have any idea. I just got a letter through the post saying I owe around £1,500, from the DWP. That was really it. There was no support system in place and obviously at the time, you panic, and it’s something that is really hard to get your head around. There is no one you can speak to about it. It’s unfair and it’s unreasonable.”
She added: “Obviously I had to pay it back. I borrowed money and with hindsight, I probably would have said to them that I can’t afford to pay it back.”
The DWP yesterday announced a new review into Carer’s Allowance overpayments following a series of reports into some people being left owing thousands of pounds – and sometimes even with a criminal record for benefit fraud.
We previously recently reported on how supermarket worker Helen Grater was told to pay back almost £6,000 after she took on an extra shift at Sainsbury’s while caring for her seriously unwell partner. Full-time carer and dad-of-three George Henderson was forced to sell his home – or face jail – after he was prosecuted because he was overpaid Carer’s Allowance.
The review will focus on how and why some people were left owing so much money, as well as what changes are needed to minimise the risk of overpayments in the future. It will also look at how people with overpayments can best be supported.
Work and Pensions Secretary, Liz Kendall MP, 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.“
Carers Trust chief executive, Kirsty McHugh, said: “A review of Carer’s Allowance overpayments is hugely welcome. Too many people have had their lives ruined by being pursued for huge sums of money simply because they made an honest mistake. These fines need to be written off and the systems allowing them to build up must be overhauled.“
