In February 2023, the Department for Work and Pensions announced that it was seeking to recover 145,567 overpayments of Carer’s Allowance. This includes almost 12,000 overpayments of between £5,001 and £20,000.
Carers Allowance is given to people who provide at least 35 hours of care a week. Overpayments happen when carers exceed their earnings threshold of £151.00 per week after tax (this is the threshold for 2024/25).
Many carers are employed and you must tell DWP if your circumstances change, including if your earnings increase. Many claimants are unaware that earning even a penny over the threshold means an overpayment may occur. This could add up and mean that thousands of pounds needs to be paid back to the DWP.
The national news recently reported on a case involving a carer who took a part-time job to supplement her Carer’s Allowance. She did not tell the DWP and had an overpayment of £20,000. She was prosecuted and had her inheritance from her mother seized under the Proceeds of Crime Act 2002.
It is always a good idea to get specialist benefits advice when starting work, especially if you are a carer. If you need to speak to someone or if you’re ever unsure, please call us on 0330 303 2222.
