UK caregivers accrue significant debts from allowance overpayments

More than 9,000 unpaid carers in the UK are facing debts due to carer’s allowance overpayments in the past year. This has led to increased calls for the government to halt this practice. The problem stems from strict rules that limit how much carers can earn while receiving benefits. Currently, around 144,000 carers are struggling with repayment debts. Many of these debts can reach thousands of pounds. Recent investigations show that the Department for Work and Pensions (DWP) has not properly informed carers when they go over their earnings limit. This has created significant financial anxiety for many families. For example, if a carer earns just a single pound over the weekly earnings limit, they could owe much more than what they expect. In one case, a carer learned they owed over £4,000 because of a small earnings breach. There are concerns that some could even face criminal prosecution for large debts. Carer charities are urging the government to pause new debt collections until an ongoing review is complete. They emphasize that the system is unfair to those who provide unpaid care. A letter from 108 charities stated that many carers already struggle financially and these debts can affect entire households. One unpaid carer, Karina Moon, shared her frustration over owing £11,000 after an earnings mistake. She finds it unacceptable that the government continues to penalize vulnerable people while acknowledging the issues with the system. The DWP has been asked to respond to these concerns.