Carer's Allowance Overpayments

Alison Hume (Scarborough and Whitby) (Lab) and Anna Dixon (Shipley) (Lab) asked the Minister for Social Security and Disability, Sir Stephen Timms, what steps the government is taking to tackle carer's allowance overpayments. In his response, Sir Stephen Timms acknowledged the vital and often heroic work of unpaid carers, and stated that the government is determined to provide them with the support they need. He mentioned that the government is currently exploring options to address the issue of overpayments, including the possible introduction of a text message alert service to inform claimants when they have breached the current earnings limit. Alison Hume followed up, agreeing that carers make incredible sacrifices and can be left in debt due to repaying the allowance after unintentionally breaching the qualifying rules. She asked if the Minister agrees that society has a duty of care to carers, and inquired about the progress the government is making in overhauling carer's allowance and addressing the earnings cliff edge. Sir Stephen Timms acknowledged Hume's points, stating that the government wants to get to the bottom of what has gone wrong with these overpayments and why so many people have been caught out. He mentioned the pilot of the text message alert service and said that if the results are positive, it will be a good first step towards addressing the overpayments problem, though more will need to be done. Anna Dixon then raised the issue of nearly 1,200 carer's allowance recipients in her constituency of Shipley. She noted that the current earnings limit leaves people vulnerable to accidentally accruing overpayments if they become ineligible, and also acts as a disincentive, deterring people from working as much as they would like. Dixon asked if the government would consider raising the earnings limit. In response, Sir Stephen Timms acknowledged Dixon's letter on the matter and stated that the government will respond to the former Work and Pensions Committee's proposals once the new Committee is in place. Robin Swann (South Antrim) (UUP) then intervened, noting the "army of unpaid carers" across the country who are being deterred from applying for carer's allowance due to concerns about the financial implications. Swann asked the government to reassure those who have not yet come forward that they will be properly supported. Sir Stephen Timms acknowledged Swann's point, stating that there is a good deal of anxiety about the overpayment problems, and that the government hopes the alert service will at least inform people when they run into a problem, so that they do not develop a large overpayment. He also stated that the government needs to look at other arrangements relating to carer's allowance in order to provide the necessary reassurance.