Thousands of unpaid carers in the UK have been hit with carer’s allowance overpayment debts in the past year, prompting fresh calls for ministers to suspend the controversial practice.
Despite government promises to tackle the issue and launch a review, new figures reveal that carers continue to be caught out by rigid earnings rules, leaving many in thousands of pounds of debt.
Over 9,000 carers have fallen foul of the strict earnings threshold in the past year alone, adding to the staggering total of 144,000 carers now repaying overpayments.
The issue stems from harsh “cliff-edge” rules, which mean even a small earnings breach can result in significant debt.
For instance, a carer who earns just £1 over the £151 weekly threshold for a full year would be required to pay back more than £4,250.
In cases where overpayments exceed £5,000, carers even face the risk of criminal prosecution. More than 250 carers have been placed under investigation for prosecution since April.
The Department for Work and Pensions (DWP) has been criticised for failing to promptly notify carers of overpayments, causing debts to accumulate unnoticed.
Campaigners have compared the scandal to the infamous Post Office debacle, which saw hundreds of innocent people wrongly prosecuted due to faulty systems.
A coalition of 108 charities and campaign groups, including Carers UK, Age UK, and Disability Rights UK, has written to ministers urging them to halt the creation of new debts until the government’s independent review is complete. The letter also calls for the cancellation of existing debts where DWP errors have contributed to the problem.
The letter states, “Many [carers] already struggle financially, and these debts impact entire households, including children and disabled family members … Carers make an invaluable contribution to society. We want the system to reflect their worth, rather than leaving them in debt for trying to balance paid work and unpaid care.”
Karina Moon, 64, is among those struggling with the consequences of the flawed system. She is repaying £11,000 after unknowingly breaching the earnings limit by around £3 per week. Despite working part-time at Tesco, she was shocked to learn that travel expenses were not deducted when calculating her eligibility.
Moon, who provides 24/7 care for her disabled daughter, said, “My daytime caring duties amount to 117 hours a week of full-on care … If I was to put my daughter into full-time care the government would have to pay someone to look after her 24/7 – and I think they’d pay them a damn sight more than £1 an hour. It’s sickening.”
Despite mounting pressure, the government has yet to take decisive action. Campaigners insist that without immediate intervention, thousands more carers will continue to suffer under a system they describe as fundamentally unfair.
The DWP has been approached for comment.
