The Chair of the Work and Pensions Committee urges immediate action on Carer’s Allowance issues.

Stephen Timms, leader of the Work and Pensions Committee, has urged government to solve the widespread faults with the carer’s allowance, noting worries about “enormous accidental overpayments” that burden unpaid carers. Timms expressed profound concern about the financial challenges that many carers have endured as a result of government blunders.

Timms highlighted the Department for Work and Pensions’ (DWP) inability to address notifications when unpaid carers earn more than £151 per week, resulting in huge overpayments of more than £20,000 over several years. Approximately 156,000 caretakers have been affected by the issue, with many going into debt or experiencing financial difficulties.

The anger over the carer’s allowance controversy has grown, with calls for swift action from Chancellor Rishi Sunak, including an amnesty for carer’s allowance debts. Timms stressed the need for broader changes to the carer’s allowance system, highlighting recent cross-party criticism.

Critics have cited the DWP’s insufficient processing of alerts, with only a percent of suspected breaches examined, allowing overpayments to accumulate unchecked. Timms advocated for the elimination of the punitive “cliff-edge” approach, in which caretakers are required to reimburse the entire week’s payment rather than the excess earnings.

Debbie Abrahams, a fellow committee member, shared Timms’ concerns, urging the DWP to communicate with carers as soon as any breaches of the wages cap are detected. She questioned the government’s strict laws that penalize carers for overpayments and advocated for a more humane approach.

Timms also argued for an increase in the carer’s allowance salary cap to match the national minimum wage, underlining the importance of adjusting for economic realities.

In response, a DWP spokeswoman acknowledged the important role of caretakers while defending the need for accountability in the welfare system, highlighting claimants’ need to disclose changes in circumstances.

The developing issue over carer’s allowance highlights the critical need for fundamental reforms to ensure fair treatment and support for unpaid carers across the UK.