The Guardian is reporting that the DWP has launched a campaign against carer’s allowance overpayments that will see more than a thousand carers prosecuted and 10,000 fined by the DWP.
As well as fines, carers will be obliged to repay any overpayment in benefits, which could be over £10,000 in some cases.
Many of the overpayments have arisen because claimants were not aware that there was an earnings limit for people receiving carer’s allowance.
In the past, the DWP checked carer’s allowance claimants’ earnings via HMRC and clawed back any overpayments the following year. But according to the Guardian, a new system was introduced to pick up overpayments more quickly. Instead, it has made matters worse.
Anyone who is investigated for an overpayment should seek help from an advice agency or law centre as a matter of urgency. There are a range of expenses that should be taken into account when deciding whether you have gone over the earnings limit and the DWP often make errors when deciding on the amount of overpayment or the period in which it has to be repaid.
You can read the full story in the Guardian.