UK Carers Face Rising Debts Amid Overpayment Crisis
Over 144,000 unpaid carers reported owing significant debts, prompting calls for reform and a review of the carer’s allowance system.
More than 9,000 unpaid carers in the United Kingdom have encountered carer’s allowance overpayment debts within the last year, igniting appeals for government intervention to halt this practice.
The government has initiated a review to address the ongoing carer’s allowance issue, yet recent statistics indicate that many carers continue to be adversely affected by the current system, amassing debts that can reach thousands of pounds.
Currently, approximately 144,000 carers are facing outstanding repayment issues after inadvertently violating stringent earning limitations associated with carer’s allowance benefits.
These 'cliff-edge' rules stipulate that if a carer earns more than the weekly threshold of £151, they become liable for substantial repayments.
For example, a carer earning just £1 over this limit for a year could be charged as much as £4,258.80. Those with debts exceeding £5,000 risk criminal prosecution; indeed, over 250 carers have already been earmarked for potential legal action since April.
Carer charities have formally urged government officials to pause the generation of new overpayment debts until the independent review concludes.
They have also requested the cancellation of existing debts that can be attributed to failures on the part of the Department for Work and Pensions (DWP).
In a letter co-signed by 108 charities and advocacy groups, stakeholders argued that the government has a responsibility to alleviate the burdens faced by unpaid carers, highlighted the systemic flaws that contribute to financial distress among these individuals.
The letter emphasizes the significant impact of these debts not only on the carers but also on their families, calling for a fairer system that acknowledges the vital societal contributions of these workers.
Personal accounts further illustrate the challenges faced by unpaid carers.
For instance, Karina Moon, a carer who is currently repaying an £11,000 debt due to a minor earnings breach, expressed dismay at the government's continued enforcement of these policies despite acknowledgments of systemic issues.
Moon stated that her extensive caring duties equate to roughly 117 hours of work weekly, yielding a carer’s allowance that equates to less than £1 per hour.
The Department for Work and Pensions has responded by acknowledging the essential role of carers and is considering the implications of benefit policies related to unpaid care work as part of their ongoing consultation.
The DWP has announced plans to increase the carer’s allowance earnings threshold from £151 to £196 per week, marking the largest cash increase to date in this threshold, set to take effect by November next year.
The government has initiated a review to address the ongoing carer’s allowance issue, yet recent statistics indicate that many carers continue to be adversely affected by the current system, amassing debts that can reach thousands of pounds.
Currently, approximately 144,000 carers are facing outstanding repayment issues after inadvertently violating stringent earning limitations associated with carer’s allowance benefits.
These 'cliff-edge' rules stipulate that if a carer earns more than the weekly threshold of £151, they become liable for substantial repayments.
For example, a carer earning just £1 over this limit for a year could be charged as much as £4,258.80. Those with debts exceeding £5,000 risk criminal prosecution; indeed, over 250 carers have already been earmarked for potential legal action since April.
Carer charities have formally urged government officials to pause the generation of new overpayment debts until the independent review concludes.
They have also requested the cancellation of existing debts that can be attributed to failures on the part of the Department for Work and Pensions (DWP).
In a letter co-signed by 108 charities and advocacy groups, stakeholders argued that the government has a responsibility to alleviate the burdens faced by unpaid carers, highlighted the systemic flaws that contribute to financial distress among these individuals.
The letter emphasizes the significant impact of these debts not only on the carers but also on their families, calling for a fairer system that acknowledges the vital societal contributions of these workers.
Personal accounts further illustrate the challenges faced by unpaid carers.
For instance, Karina Moon, a carer who is currently repaying an £11,000 debt due to a minor earnings breach, expressed dismay at the government's continued enforcement of these policies despite acknowledgments of systemic issues.
Moon stated that her extensive caring duties equate to roughly 117 hours of work weekly, yielding a carer’s allowance that equates to less than £1 per hour.
The Department for Work and Pensions has responded by acknowledging the essential role of carers and is considering the implications of benefit policies related to unpaid care work as part of their ongoing consultation.
The DWP has announced plans to increase the carer’s allowance earnings threshold from £151 to £196 per week, marking the largest cash increase to date in this threshold, set to take effect by November next year.
