The UK government is launching an independent review into Carer’s Allowance overpayments that have had significant financial and emotional consequences for many families. This year, the government sought to recover money from over 134,000 carers in the UK, creating a sudden demand for repayments in some cases that has pushed some families toward debt and caused others to quit their jobs. The review aims to uncover how and why the overpayments occurred and determine how affected carers can receive support moving forward.
The review is not clear on whether families still owing money will need to continue making repayments throughout the inquiry. The Liberal Democrats have called on the UK’s Labour government to forgive many of the overpayments. Prime Minister Sir Keir Starmer has welcomed the review, saying it will discern “what went wrong and therefore what can be done to put it right.” However, members of parliament have asked why it has taken so long for a review to be announced.
Families fined for Carer’s Allowance overpayments were often unaware they had exceeded the earning limit for the allowance, which is capped at £151 a week. This low threshold means that earning even a few pence more than £151 a week from other work results in a requirement to repay all of one’s Carer’s Allowance, making the benefit’s system challenging to navigate.
The Carers Trust CEO, Kirsty McHugh, believes that the review is greatly needed, with too many people suffering because of being pursued for large sums of money due to an honest mistake. She hopes the government will review and reform the “archaic and unfair” Carer’s Allowance system. Sir Ed Davey, leader of the Liberal Democrats and himself a carer, considers the current income threshold to be an issue. The UK’s Department for Work and Pensions will hold the review, chaired by Liz Sayce, the former CEO of Disability Rights UK, to minimize overpayment risks and support those affected by overpayments
Read the full article from The BBC here: Read More
