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Overpayments of Carer's Allowance

Inquiry

There are 6.5 million unpaid carers in the UK who make a hugely valuable contribution to society. Many carers will be entitled to Carer’s Allowance, but this Committee has previously reported on the “cliff edge” within this benefit; if someone earns just £1 over the earnings threshold, they lose 100% of their Carer’s Allowance. It has been reported that many carers are often not aware that a rise in their earnings has taken them over this threshold. This means that they could, inadvertently, continue to receive Carer’s Allowance when they are no longer eligible, resulting in an overpayment.

The DWP estimates that it overpays £160 million in Carer’s Allowance on an annual basis and is now looking to recover that money. This means that many carers could have to repay up to thousands of pounds, or even face more serious action; it has been reported that 1,000 carers could face prosecution and up to 10,000 may face fines.

The Committee is holding a one-off evidence session with Emily Holzhausen OBE, Director of Policy and Public Affairs at Carers, UK, to explore:

  • why the levels of overpayments in Carer’s Allowance are so high
  • how clear the rules around earnings for carers are
  • the impact that repaying overpayments has on carers

    Commenting on the one-off investigative session, Committee Member Ruth George MP said:

"Our health and social care systems would fall apart without the contribution of unpaid carers, who perform a selfless and invaluable role for at least 35 hours a week to qualify for the £64.80 carer’s allowance – that’s a maximum £1.85 an hour. When I worked with retail staff, we would often see someone get a small pay rise and inadvertently exceed the earnings threshold. It was bad enough when this was picked up at the end of the year and they had to find and pay back hundreds of pounds. When carers are only being informed of overpayments years later and potentially being taken to court for thousands of pounds, it is imperative for the Committee to look at the evidence and question whether Government is acting in the best interests not just of individuals, but of society and the wider economy."

Earlier this year the Committee conducted an inquiry into the support available for people with caring responsibilities to help them get into and stay in work – you can find all the information about that here: Support for carers.

Reports, special reports and government responses

View all reports and responses
30th Report - Overpayments of Carer's Allowance
Inquiry Overpayments of Carer's Allowance
HC 1772
Report
Response to this report
1st Special Report - Overpayments of Carer’s Allowance: Government Response to the Committee’s Thirtieth Report of Session 2017–19
HC 102
Special Report
1st Special Report - Overpayments of Carer’s Allowance: Government Response to the Committee’s Thirtieth Report of Session 2017–19
Inquiry Overpayments of Carer's Allowance
HC 102
Special Report
Letter from Chair to Peter Schofield CB, Permanent Secretary, DWP, re follow-up of 15 May evidence session - dated 3 June 2019
Inquiry Overpayments of Carer's Allowance
Correspondence
Letter from the Chair to the Secretary of State for Work and Pensions on the Government response to the Overpayments of Carer's Allowance report, 30 October 2019
Inquiry Overpayments of Carer's Allowance
Correspondence
Letter from Chair to SoS for WP Re Governmnent response to the Committees Thirtieth Report of Session 2017 19 dated 30 October 2019
Inquiry Overpayments of Carer's Allowance
Correspondence

Oral evidence transcripts

View all oral evidence transcripts
15 May 2019
Inquiry Overpayments of Carer's Allowance
Witnesses Sir Amyas Morse KCB, Comptroller and Auditor General, National Audit Office; Peter Schofield, Permanent Secretary, Emma Haddad, Director General, Service Excellence Group, and Laura Squire, Head of Fraud, Error and Debt, Strategy, Policy, and Change, Department for Work and Pensions (at 10.15am).
Oral Evidence
28 November 2018
Inquiry Overpayments of Carer's Allowance
Witnesses Emily Holzhausen OBE, Director of Policy and Public Affairs, Carers UK
Oral Evidence
Carers UK (OCA0002)
Carers UK (OCA0001)

Other publications

No other publications published.

Contact us

We can’t usually help you with an individual problem or a specific complaint.

  • Email: workpencom@parliament.uk
  • Phone: 020 7219 8976 | 020 7219 1679 (Media)
  • Address: Work and Pensions Committee | House of Commons | London | SW1A 0AA