The government is launching a massive reassessment exercise affecting 26,000 carers who unknowingly breached complex earning rules
Thousands of people could be about to have their debts wiped out after a review into benefit overpayments. The Government is set to begin a massive ‘reassessment exercise’ starting in early this year, aimed at fixing a decade of failures that left some of the country’s most vulnerable people facing bills as high as £20,000 or even prosecution.
Families who were treated like ‘criminals’ for unknowingly breaching complex earning rules by mere pennies will see the Department for Work and Pensions ( DWP ) admit it was their own ‘confusing’ guidance at fault. This has paved the way for a massive refund scheme to pay back the money taken from carers wrongly accused of overclaiming.
Unpaid carers provide care for family members, friends, and elderly people in the local community for example. They are entitled to some support, and that comes in the form of weekly payments of £83.30 – the main benefit for anyone who provides at least 35 hours of unpaid care every week.
Issues start to arise as soon as an individual starts to earn some money which can see them become ineligible for the allowance. The ‘scandal’ stems from carers who had been unaware they were exceeding the £196 per week threshold they were permitted, and have been facing growing debts as a result of repayment orders.
It is thought that 26,000 people have been affected. But now work is well underway for these people to get their money back with Which? financial expert Lisa Webb appearing on BBC Morning Live on Monday, January 26, to break down who is eligible for their money back, how to apply, and what they have to do to avoid overpayments in the future, reports the Mirror.
Who qualifies?
To have your debts entirely cleared, you must have been required to repay Carer’s Allowance at least once since 2015. Subsequently, if your working hours or earnings varied during a specified timeframe, resulting in you unknowingly surpassing the limit, you could be able to have your debt either diminished or wiped out completely.
“If you’ve already repaid the money, you may be entitled to a refund,” the specialist advises. “The government hasn’t said whether anyone would be getting compensation, but it’s absolutely worth considering that you might be getting at least some money back.”
How to make a claim
Those impacted don’t need to take any action right now. The DWP is expected to contact people “in due course”, which could mean anything from the coming days to several months away.
The specialist says: “Keep hold of all your paperwork and make sure you have a record of everything. Check the Carers UK support pages and regularly visit the relevant official websites so you stay up to date with any updates.”
A scam warning has also been issued, with people urged to be extremely cautious about unexpected calls, messages or emails. Anyone with concerns should only seek information through official channels, such as the gov.uk website.
