Something wrong with Carer's Allowance - Starmer

Sir Keir Starmer made the comments during a visit to Barrow-in-Furness

Sir Keir Starmer has said he is "very concerned" about the number of unpaid carers being hit with demands to repay Carer's Allowance overpayments.

A woman from Cheshire recently had her £16,000 inheritance seized by the government for failing to declare her minimum wage Co-op job while caring for her mum.

"We cannot allow that to happen again," the Labour leader said.

The Department for Work and Pensions (DWP) said it was committed to fairness in the welfare system and Carer's Allowance had increased by "almost £1,500 since 2010".

Liberal Democrat leader Sir Ed Davey has added his voice to calls for a pause in repayment demands.

“Carers must be supported by their government for their vital hard work not treated like criminals for honest mistakes,” he said.

Two former DWP ministers, Conservative Sir Iain Duncan Smith and Liberal Democrat Steve Webb, have also previously called for a pause in repayment demands.

'Unsung heroes'

Speaking on a visit to Barrow-in-Furness on Friday, Sir Keir told BBC North West Tonight: "From a human point of view you’ve got individuals and their families who, through no fault of their own, have got into this position where the government is now asking them to repay money.”

Prosecutors used the Proceeds of Crime Act to recover Vivienne Groom's inheritance after charging her with benefit fraud.

Mrs Groom had said she was advised by a social worker that her job did not need to be declared.

In response to her case, Sir Keir said: "Something’s gone very wrong here", adding that the benefits system “has got to be fair to those that were providing the care in the first place”.

He did not directly answer when asked what changes Labour would make to the Carer's Allowance system.

Vivienne Groom with her husband, Geoff Groom, after having her inheritance seized at Chester Crown Court

As of February 2023, the DWP said it was seeking to recover 145,567 overpayments of Carer's Allowance, including almost 12,000 cases concerning overpayments of between £5,001 and £20,000.

Sir Ed Davey said something had gone "awfully wrong" in Mrs Groom's case.

"The government needs to pause these demands for repayments until the system is reviewed," he said.

A DWP spokesperson said it was "committed to fairness in the welfare system" and that safeguards were in place "for managing repayments while protecting the public purse".

It described carers as "unsung heroes" and added that it had increased Carer's Allowance by "almost £1,500 since 2010".

Benefits staff get automatic alerts from HM Revenue and Customs (HMRC) if a Carer's Allowance claimant is earning too much.

However the DWP said it was claimants' responsibility to ensure they are entitled to the benefits they are paid.

Five years ago, the House of Commons Work and Pensions Committee accused the DWP of "bullying and harassing" those who had been overpaid.

The government said at the time it had a duty to the taxpayer to recover the money but "safeguards are in place to protect claimants from financial hardship".

According to the DWP "claimants have a responsibility to inform DWP of any changes in their circumstances that could impact their award, and it is right that we recover taxpayers' money when this has not occurred."