The Bishop of Southwark received the following written answers on 2nd September 2024:
The Lord Bishop of Southwark asked His Majesty’s Government what assessment they have made of the report, Carer’s Allowance Overpayments, published by Carer’s UK on 26 July.
Baroness Sherlock (Lab, DWP): The Government recognises the invaluable service provided by the millions of unpaid carers across the country who provide care and continuity of support for vulnerable people every day. It recognises the challenges they face and is determined to provide them with the support they deserve.
The Government welcomes the report published by Carers UK, and is considering its findings. Ministers were pleased to meet with the organisation, and with carers, to discuss the issues raised shortly after publication of the report.
More broadly, in respect of overpayments of Carer’s Allowance, the Government is moving quickly to understand exactly what has gone wrong so that it can set out its plan to put things right.
The Lord Bishop of Southwark asked His Majesty’s Government what plans they have to revise (1) the limits on earnings and the number of hours that can be worked, and (2) the rate at which earnings above those limits can be reclaimed, for those in receipt of Carer’s Allowance.
Baroness Sherlock: The Government recognises the challenges unpaid carers are facing and is determined to provide them with the help and support they need and deserve. It is looking closely at how the benefit system currently does this.
Universal Credit provides support to carers on low incomes, whether they are in paid employment or not. Carer’s Allowance, by contrast, is available to all unpaid carers, provided they are not in ‘gainful employment’. This is currently defined as having earnings not exceeding £151 a week net of allowable expenses. This level is reviewed annually alongside the Secretary of State’s statutory review of State pension and benefit rates. Many Carer’s Allowance recipients are in households also receiving Universal Credit, where the structure of tapers and work allowances (where applicable) effectively takes precedence over ‘gainful employment’ test in Carer’s Allowance.
With respect to overpayments of Carer’s Allowance due to the interaction with earnings, the Government is moving quickly to understand exactly what has gone wrong so that it can set out its plan to put things right.

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