Excellent debt from Carer’s Allowance overpayments rose to greater than £250m final 12 months, in line with the federal government’s spending watchdog.
The Nationwide Audit Workplace (NAO) mentioned the determine had elevated by £100m since 2018/19.
Charity Carers UK mentioned the report was “additional proof of a damaged system that’s failing unpaid carers”.
The federal government launched an impartial evaluation of overpayments in October, after some carers have been pressured to pay again hundreds of kilos leaving many in monetary hardship.
The Division for Work and Pensions (DWP) paid £3.7bn in Carer’s Allowance to greater than 900,000 claimants final 12 months, in line with the NAO report.
If somebody spends not less than 35 hours per week caring for somebody with an sickness or incapacity they might be eligible for the allowance, which is at present £81.90 per week.
To qualify, somebody should not earn greater than £151 per week. The brink will rise to £196 per week from April.
If a carer earns only a pound above this determine there isn’t any taper fee and they’re now not eligible for any fee.
The NAO mentioned this created a “cliff-edge”, that means vital overpayments can construct up rapidly.
Claimants are required by legislation to tell the DWP promptly if their circumstances change.
However the division has confronted criticism for failing to stop overpayments, regardless of its methods flagging when a claimant is incomes an excessive amount of.
Some carers have instructed the BBC they have been unaware they’d exceeded the brink till being knowledgeable years later, when the sums had run into hundreds of kilos.
Claimants incomes above the permitted restrict made up 58% of recent overpayment circumstances final 12 months.
Different causes for overpayments embrace the claimant now not offering care, for instance if the individual being cared for has died.
Some 136,730 individuals had excellent overpayment debt final 12 months, a rise of 71% in contrast with 2018/19.
Nonetheless, the NAO mentioned the common worth of recent overpayments recognized by the DWP had fallen up to now 4 years, suggesting they have been being recognized earlier.
The DWP seeks to get better all profit overpayments the place it has a authorized foundation to take action, until it will trigger monetary hardship or wouldn’t be value efficient.
The division may also refer a case for prosecution if it considers an overpayment was fraudulent, which occurred in 54 circumstances final 12 months.
Instead, it will possibly supply an “administrative penalty” of £350 or 50% of the overpayment, whichever determine is larger, as much as a most of £5,000.
The variety of administrative penalties has fallen considerably lately, from 774 in 2018-19 to 75 in 2023-24.
In the meantime, there was a rise in the usage of civil penalties of £50 – with 30,129 imposed final 12 months, up 50% from 2018-19.
The federal government-ordered evaluation, which is able to have a look at tips on how to cut back the dangers of overpayment and tips on how to help carers who’ve already accrued money owed, is because of report again by subsequent summer time.
Hannah Walker, chief government of Carers UK, mentioned any suggestions from the evaluation must be carried out as quickly as potential.
Dominic Carter, director of coverage and public affairs at Carers Belief, known as for a “full overhaul” of the allowance system, describing it as “overly difficult” and “outdated”.
Minister for Social Safety and Incapacity Sir Stephen Timms, mentioned: “This report units out the dimensions of the problem and underlines the significance of our impartial evaluation into overpayments so we are able to make the system fairer for hundreds of selfless carers.
“Carers should be supported, which is why we’re boosting the earnings threshold, benefiting greater than 60,000 individuals, whereas our evaluation will resolve the issue so we are able to shield carers from unfair debt and shield taxpayers’ money.”
