REGULATORY · UK
DWP orders unpaid carers to repay benefits
Change
In January the Department for Work and Pensions (DWP) sent about 1,400 unpaid carers letters demanding repayment of sums linked to alleged breaches of carer’s allowance earnings rules.
Why it matters
About 1,400 unpaid carers received repayment demand letters in January. The earnings rule underpinning those demands had been scrapped four months earlier. Most affected cases include a £50 civil penalty for negligence. Overpayments were calculated using a cliff-edge method so a small weekly breach becomes a full-year benefit loss; a £1 weekly breach over 52 weeks produced a £4,332 demand. Some carers have already repaid sums or agreed monthly repayment schedules.
Implications
- • Immediate cash outlays or entry into monthly repayment plans for affected carers.
- • £50 civil penalties applied in most cases increase the total recovery amount.
- • Cliff-edge calculation method creates large annual liabilities from minor weekly earnings breaches.
- • Some repayments may already be settled or committed before any reassessment under new guidance.
Who is affected
- • Unpaid carers claiming carer’s allowance
- • DWP benefits decision-makers and caseworkers
- • Benefit recovery and debt-administration teams
Source
Topics