Thousands of carers have been overpaid by the Department for Work and Pensions (DWP) through carer’s allowance.
There are approximately 5.7 million carers in the UK according to the charity Carers UK and almost 1.4 million people receive carer’s allowance in the UK, according to the latest government figures.
Yet many people have claimed more than they should have, by receiving the benefit while earning more than the set weekly earnings limit.
Figures from a parliamentary question show that 34,500 carers were overpaid by the DWP in the year 2023/4. The year before the figure was 34,700 and in 2021/2 it was 36,100.
The average overpayment is about £2,000 but some carers owe a lot more than this and as much as £22,000, according to Citizens Advice.
Several charities and a group of MPs have now called for the government to launch a review into how the system works and how carer’s allowance is paid.
In this guide we look at:
- How much is carer’s allowance in 2024?
- Why are so many people being forced to pay money back to the DWP?
- Could you owe the DWP thousands?
- How to check if you are due to pay money back to DWP
- What does the DWP say?
- What are the changes to the carer’s allowance in 2024?
- Why would the DWP stop my carer’s allowance?
- DWP carer’s allowance number and contact details
How much is carer’s allowance in 2024?
Carer’s allowance is £81.90 a week for the 2024-25 tax year and it’s paid every four weeks.
It’s available to carers who earn no more than £151 a week after tax, national insurance and other expenses (which include 50% of your pension contributions, equipment for your job, travel costs, and business costs if you’re self-employed).
To be eligible for the benefit, you must provide at least 35 hours of care every week. It’s not means tested, so it doesn’t matter how much you have in savings or other assets.
Read more: How does Universal Credit work?
Why are so many people being forced to pay money back to the DWP?
If someone receives carer’s allowance, but then their situation changes – if, for example, they start earning above the £151 per week limit – they should contact the DWP to stop the payment.
If they earn even 1p over the £151 a week limit, they lose the entire amount of the benefit and have to pay it back. They may also be fined a £50 civil penalty.
However, critics say the system for claiming the benefit is too complex and not set up to deal with things like irregular pay or one-off bonuses. This means many people have breached the weekly payment limit but haven’t realised. They are then left owing a large sum of money to the DWP that they didn’t previously know about.
These overpayments can build up over time, leading to people owing the DWP thousands of pounds.
In 2019 a National Audit Office (NAO) report criticised the system stating that it didn’t detect overpayments fast enough. This lead to many carers unwittingly building up big debts to the DWP.
Helen Walker, chief executive at Carers UK, said: “The impact of receiving an overpayments statement is devastating for unpaid carers. It’s crucial to remember that they are putting in substantial hours caring, often at a cost to their own finances, physical health and emotional wellbeing.
“We need a better, modernised system which is easier to navigate and adequately supports unpaid carers instead of punishing them for mistakenly misinterpreting complicated and harsh earnings rules.
“The issue was highlighted by a National Audit Office investigation five years ago and continues to affect thousands of unpaid carers today. Action is urgently needed to stop carers from ending up in this situation, and to reduce the financial hardship and ill-health it causes.
“Carers UK would like to see a full review into carer’s allowance and its eligibility rules to ensure that it adequately values and supports carers.”
Read more: Cost of living payment 2024: Full list of DWP dates
Could you owe the DWP thousands?
If you receive the carer’s allowance but you have earned more than the weekly-earnings limit, then you may owe money to the DWP.
It is up to the person claiming carer’s allowance to keep the DWP informed if anything changes in their circ*mstances or if they receive an overpayment.
Carers UK says if the DWP contacts you relating to an overpayment, you should be asked to pay it back in a “reasonable way” that doesn’t put you under any undue stress.
Subscribers to The Times can read more: The cost of being an unpaid carer
How to check if you need to pay money back to DWP
If you think you have received an overpayment in carer’s allowance, you can check what the allowance was in the relevant year and also check your payslips to see how much you received. If anything looks wrong, or there is a duplication of payments, you should contact the DWP.
You can also challenge a decision by the DWP, if it has sent you a letter regarding overpayments which you believe is a mistake. There is full advice on the Carers UK website or you can ask it for help by contacting: advice@carersuk.org.
What does the DWP say?
The DWP said: “Carers across the UK are unsung heroes who make a huge difference to someone else’s life and we have increased carer’s allowance by almost £1,500 since 2010.
“We are committed to fairness in the welfare system, with safeguards in place for managing repayments, while protecting the public purse.
“Claimants have a responsibility to consistently inform DWP of any changes in their circ*mstances that could impact their award, and it is right that we recover taxpayers’ money when this has not occurred.”
What are the changes to the carer’s allowance in 2024?
The amount of money paid through carer’s allowance increased in April 2024, from £76.75 to £81.90. This was a rise of 6.7%, which applied to all benefits from the DWP and HMRC.
The earnings limit also rose, from £139 a week in 2023/4 to £151 a week.
Read more: The key 24 changes to your money in April 2024
Why would the DWP stop my carer’s allowance?
If your eligibility changes the DWP may stop your carer’s allowance but the onus is on the person claiming to tell it of any changes. Changes in your circ*mstances could include being paid more than the weekly limit but also if the person you care for goes into hospital or a care home.
You need to contact the DWP if your circ*mstances change, and you can do this through its Carer’s Allowance Unit on 0800 731 0297. In Northern Ireland you will need to contact the Disability and Carers Service on 0800 587 0912.
You can also find help by contacting Carers UK on: advice@carersuk.org
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