UK Carers Face Penalties for Overpayments

A recent National Audit Office (NAO) report has revealed that over 262,000 unpaid carers in the UK have been subjected to harsh penalties due to minor breaches of Carer's Allowance rules, leading to a staggering £325 million in overpayments being reclaimed. Many carers face significant debt, with an average repayment nearing £1,000 annually, while over 600 individuals have even faced criminal prosecution. The 'cliff-edge' earnings rule causes severe repercussions for those earning just above the £151 weekly threshold, triggering excessive repayment demands. Advocacy groups, including Carers UK and Carers Trust, have condemned the system as 'broken' and a source of immense distress, urging for immediate reforms. The Department for Work and Pensions (DWP) has been criticized for understaffing its carer's allowance unit, only investigating half of the potential overpayment alerts. An independent review is underway, with the DWP promising to raise the earnings threshold to alleviate some of the financial strain on carers.