Martin Lewis says people on one DWP benefit could be forced to pay back £820

Martin Lewis has warned benefits claimants could be forced to pay back £820 to HMRC due to rules. Money Saving Expert founder, and BBC and ITV regular Mr Lewis has warned benefits claimants could be forced to pay back money to the government due to a HMRC rule.

There are currently more than 134,500 unpaid carers repaying overpayment debts of more than £251m after falling foul of “cliff-edge” rules on earnings limits. A carer who earned £1 more than the £151 threshold for 52 weeks would have to pay back not £52 but £4,258.80.

He tweeted: "Govt's just put out its Carers Allowance consultation remit. Its worthy aim's to examine how to stop the overpayment crisis that's left 100,000+ unwittingly owing State money. Yet my concern is it mightn't address the big issue ie the hideous cliff-edge!

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"Carers allowance provides those on low income who care £82 a week income, but you can only get it if you earn under £151/wk. Go 1p over that limit and you lose it all. That is perverse. Other benefits don't work that way - they're tapered. And this is the clear cause of the problem (I've written to the Chancellor about it before).

“Overpayments happen because many carers are stressed overworked vulnerable people. If they get a slight pay uplift (eg min wage rise) and don't notice, the benefits office keeps paying them. So they could've earned 1p a week over for 10 weeks, then be asked to pay an unaffordable £820 back.

“I have put a question in to the consultation body to double-check that they are able to examine this, and hope they are, if not the whole thing would feel farcical. I will keep you up to date.” The Liberal Democrat leader, Ed Davey, said: “It is appalling that so many family carers have been caught up in this scandal of the DWP ’s own making. This has caused misery and distress on a staggering scale.”