DWP and HMRC Carers Allowance change 'to tackle problem'

The Government said it was reviewing how to stop carers from being paid too much by the system

The Government is considering the rollout of a text message service to stop carers breaking overpayment rules on Carers Allowance, which has seen some having to pay back thousands of pounds. Work and pensions minister Sir Stephen Timms said the department was reviewing ways to stop carers getting too much from the system, which can happen when people's earnings exceed the benefit threshold.

Speaking in the Commons on Monday, Sir Stephen said: "The work of unpaid carers is absolutely vital and often heroic. We are determined to give unpaid carers the support they need. We are looking at the moment at options on tackling the problem with overpayments, including the possible introduction of a text alert service."

Labour MP Alison Hume said: "Carers make incredible sacrifices to care for loved ones, but they can be left deep in debt, repaying carers allowance after unintentionally breaching the qualifying rules. Does my honourable friend agree that as a society we have a duty of care to carers?"

Sir Stephen replied: "We want to get to the bottom of what's gone wrong with these overpayments, why so many people have been caught out. We have been piloting the introduction of a text message service, that involves texting 3,500 claimants to alert them when they HMRC informs DWP that the claimant has breached the current earnings limit."

Who is eligible for Carers Allowance

According to gov.uk, carers can get £81.90 a week if they look after someone for at least 35 hours a week and they get certain benefits. The carer does not have to be related to, or live with, the person they care for.

There is no extra payment for caring for more than one person. If someone else also cares for the same person, only one can claim Carer’s Allowance.

Carer’s Allowance can affect the other benefits that both the carer and the person they care for get. The carer has to pay tax on it if their income is over the Personal Allowance.