Warning for tens of thousands on benefits being forced to repay up to £20k due to DWP error
TENS of thousands on benefits are being forced to repay up to £20,000 due to DWP errors.
Households receiving carer's allowance are having to fork out huge sums after exceeding the benefit's weekly earnings limit.
The earnings limit, previously set at £151, was increased to £196 in April - the largest rise in nearly 50 years.
However, anyone receiving the benefit who exceeds this limit is required to repay any overpaid amount.
However, past mistakes have led to the DWP failing to alert carers when they've exceeded the limit.
New analysis by Carers UK, shared with , reveals that over £357million in carer's allowance has been overpaid due to errors over the past six years.
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Emily Holzhausen, director of policy and public affairs at Carers UK, told the publication carer's "deserve better".
She added that the charity has urged the government to cancel the debts of those who have been forced to repay money after exceeding the earnings limit.
Since 2019, tens of thousands of people on carer's allowance have unknowingly exceeded the earnings limit.
In 2018, the government introduced a new technology called the Verify Earnings and Pensions (VEP) tool, designed to help the DWP monitor thousands of potential earnings breaches each month.
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However, the DWP chose to investigate only half of the VEP alerts, allowing some breaches to go unnoticed for extended periods.
This led to carers unknowingly racking up huge overpayments and having to repay thousands -or even tens of thousands - of pounds in overpaid benefits.
One such case was that of Vivienne Groom, who was left owing thousands of pounds.
In 2023, Vivienne Groom was prosecuted for failing to report her minimum wage Co-op job while caring for her mother and was ordered to repay £16,000 in overpaid benefits.
Last month, ministers announced an £800,000 investment to ensure all VEP alerts are reviewed, allowing overpayments to be detected earlier.
A DWP spokesperson told The Guardian: "The Carer’s Allowance overpayment rate is the lowest on record.
"And we are going further by increasing funding and bringing in more staff to check 100% of alerts to help prevent carers falling into debt.
"We are absolutely clear that we want to eliminate waste and ensure people get the money they are entitled to, so we can invest in our public services as part of our plan for change."
What to do if you breach the earnings limit
If you have ever breached the earnings limit, you should try and proactively report it to the DWP as it is classed as a change in circumstances.
You can report any change in circumstances online via the Government's website.
But you'll need your National Insurance (NI) number to hand, details of the person you're caring for and details of the change.
If you have been overpaid Carer's Allowance, you will have to pay it back in full or instalments via the DWP Debt Management platform.
This is also on the Government's website.
If you don't do this, the DWP can take deductions from your work salary, or even pass your case on to a debt collector.
If you don't engage with the debt collector, it may then take your case to the county courts.
You can dispute an overpayment if you don't agree with it, but you'll need evidence as to why you claim to not have overpaid.
You can do this via what's known as a "mandatory reconsideration", which you can submit to the DWP online, via phone or by letter.
The specific contact details you'll need to send any correspondence to will be on the decision letter you receive from the DWP.
Once the DWP has received your mandatory reconsideration, you will receive a "mandatory reconsideration notice" informing you whether it has changed its decision.
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If you disagree with that outcome, you can appeal to the Social Security and Child Support Tribunal.
A judge will listen to both sides of the argument before making a decision.
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