The Department for Work and Pensions (DWP) is increasing staff numbers to address a backlog of Carer’s Allowance overpayment cases, following reports of carers being forced to repay thousands due to administrative delays. Currently, the DWP only investigates half of the alerts generated by its internal system, which flags potential overpayments. With 20 additional staff joining a team of 70, the department aims to check 100% of these alerts moving forward.
Recent figures show 32,533 unresolved alerts as of February, with an estimated 99,000 more expected this year. Investigations into these cases have previously found that 67% resulted in overpayments, while 5% led to arrears being paid to carers. The DWP has faced criticism for failing to act on these alerts sooner, leaving many unaware they had exceeded the earnings threshold until faced with large repayment demands.
Carers UK welcomed the move but warned that clearing the backlog could uncover more debts. The charity, along with Liberal Democrat leader Sir Ed Davey, has called for historic overpayments to be written off where delays in notification occurred. However, Minister for Social Security Sir Stephen Timms emphasized the need to balance taxpayer interests with fair repayment plans.
An independent review into earnings-related overpayments is underway, exploring ways to prevent future issues, including potential reforms such as a tapered earnings threshold. Currently, carers lose their entire allowance if they earn even £1 over the £196 weekly limit. The DWP is also trialing text reminders to help claimants report changes promptly.
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