Debt Talk: Carers & benefit overpayment

Thousands of unpaid carers have been fined due to falling foul of earnings rules in the UK. Some of them also faced prosecution. The Department of Work and Pension (DWP) is recovering the overpayment of carers’ allowance from their existing benefit or salaries. On this month’s Debt Talk podcast, Ripon Ray explored: ‘Carers & benefit overpayment’ with distinguished guests from a funder and civil society organisations.

Rory Ewan, Senior Analyst from Policy in Practice, spoke about financial and non-financial challenges carers face in the UK. He explained the nature of carers’ role and how they have fallen foul of the criteria for carers allowance. He also describes how income received under carers allowance is different from universal credit. Universal credit has a taper system where carers lose the whole of their allowance if they earn a pound above the legal threshold. The DWP then use drastic enforcement action to recover the debt which leaves carers in further poverty and with some faced with criminal prosecution.

Abby Jitendra, Senior Policy Adviser from the Joseph Rowntree Foundation (JRF) explained the UK's carers' state. They are mostly women, low-paid and deemed to fall within the vulnerability category. JRF carried out several research into the causes of poverty and carers and they are financially penalised for caring and also marginalised from the labour market leaving them with insecurity. Abby also highlighted the importance of changes in the benefits system to support carers in the long term.

Both panel members provided Debt Talk listeners with TOP TIPS to consider policy change to improve the lives of carers in the UK. My next podcast is on: 'Indebted with By Now Pay Later products.’