Carer’s Allowance Overpayments

The work of unpaid carers is vital and often heroic, and we are determined to give them the support that they need. We are currently looking at options for tackling the problem of overpayments, including the possible introduction of a text message alert service.

Carers make incredible sacrifices to care for loved ones, but they can be left deep in debt as a result of repaying the allowance after unintentionally breaching the qualifying rules. Does my right hon. Friend agree that we, as a society, have a duty of care to carers, and can he say more about the progress that the Government are making in overhauling carer’s allowance and addressing the earnings cliff edge?

My hon. Friend is absolutely right, and I agree that we need to support carers properly. We want to get to the bottom of what has gone wrong with these overpayments and why so many people have been caught out. We have been piloting the introduction of a text message service, as I have mentioned, which has involved texting 3,500 claimants to alert them when His Majesty’s Revenue and Customs informs the DWP that they have breached the current earnings limit. We are currently looking at the results, and if they are positive, that will be the first step towards addressing the overpayments problem. We will need to do more, but it will be a good first step.

There are nearly 1,200 recipients of carer’s allowance in Shipley. The current earnings limit leaves people vulnerable to accidentally accruing overpayments if they become ineligible for the allowance, and it also acts as a disincentive, deterring people from working as much as they would like to. Will the Government consider raising the earnings limit?

My hon. Friend has written to me about this matter, and I welcome her commitment to making progress. In an excellent piece of work, the former Work and Pensions Committee made a number of recommendations on the earnings rules, and once the new Committee is in place, we shall respond to the former Committee’s proposals.

The Minister has referred to the army of carers that we have across the country, but we also have an army of unpaid carers who are being deterred from applying for carer’s allowance because of concerns about the financial implications. Can the Government reassure those who have not yet come forward that they will be supported properly?

I very much hope that we can, because the hon. Gentleman is right: there is a good deal of anxiety about these overpayment problems. We hope that the alert service will at least inform people when they run into a problem so that they do not then develop a large overpayment, which has happened all too often in the past, but we also need to look at the other arrangements relating to carer’s allowance in order to provide the reassurance for which the hon. Gentleman has rightly called.