DWP Carer’s Allowance warning as ‘huge problems’ hit Brits | Personal Finance | Finance
The Government has come under fire for the “broken Carer’s Allowance” system following a debate in Parliament on Monday. Dominic Carter, director of policy and public affairs at Carers Trust, was responding to news that the Government plans to introduce a text message service to prevent carers from breaching overpayment rules.
This issue has resulted in some carers having to repay thousands of pounds. In the Commons on Monday, Work and Pensions Minister Sir Stephen Timms stated that the department was exploring ways to prevent carers from receiving excessive payments from the system.
This can happen when individuals’ earnings surpass the benefit threshold. Sir Stephen mentioned the “possible introduction of a text alert service” as one of these options. However, Mr Carter argued that it “doesn’t go anywhere near solving the problems”.
He said: “The introduction of text alerts doesn’t go anywhere near solving the problems of the broken Carer’s Allowance system. The Government needs to go much further by fixing this outdated, completely inadequate benefit. Its complex eligibility criteria and low income threshold are causing carers huge problems that no text message can ever address. We hope to see a much more detailed plan from the Government on how they’ll overhaul it without continuing to heap extra responsibility on the shoulders of busy carers.”
In a Commons address on Monday, Sir Stephen said: “The work of unpaid carers is absolutely vital and often heroic. We are determined to give unpaid carers the support they need. We are looking at the moment at options on tackling the problem with overpayments, including the possible introduction of a text alert service.”
Labour MP Alison Hume voiced her concerns: “Carers make incredible sacrifices to care for loved ones, but they can be left deep in debt, repaying carers allowance after unintentionally breaching the qualifying rules. Does my honourable friend agree that as a society we have a duty of care to carers?”
To which Sir Stephen acknowledged: “We want to get to the bottom of what’s gone wrong with these overpayments, why so many people have been caught out. We have been piloting the introduction of a text message service, that involves texting 3,500 claimants to alert them when they HMRC informs DWP that the claimant has breached the current earnings limit.”
Who qualifies for Carer’s Allowance
According to gov.uk, carers may receive £81.90 per week provided they look after someone more than 35 hours a week and the cared-for individual receives certain benefits.
It doesn’t matter if the carer is not related to or cohabiting with the person receiving care. No bonus is awarded for caring for multiple individuals and only one Carer’s Allowance can be claimed even if numerous people tend to the same individual.
