Carer’s Allowance

Richard Foord Excerpts

Wednesday 16th October 2024 Commons Chamber

[Richard Foord (Honiton and Sidmouth) (LD)]

The Secretary of State for Work and Pensions was on the radio this morning, and I listened to her on the BBC describing how

“the benefit system can have a real impact on whether you incentivise or disincentivise work.”

I heard from her that this new Government intend to incentivise work, and in that we wish them well.

I wish to highlight the case of a constituent of mine, Amanda Jennings from Ottery St Mary, who reached out to me pleading for support. She is a mother and a full-time carer for her adult son who has severe autism. Amanda was recently notified by the Department for Work and Pensions that she owed almost £2,000 dating back to 2019, due to carer’s allowance overpayments. To compound that stress, a civil penalty was imposed. Her problem was that she had been receiving wage slips giving an hourly rate, and the payments were processed by an external payroll agent, so she did not have a reliable monthly income like we do.

Despite raising queries and assuming that the DWP was receiving up-to-date information, she was accused—wrongly—of misreporting her income. The consequences for her family have been severe. Her son, who had re-entered education after years of disengagement, has dropped out, and her own health has deteriorated. She is not alone—more than 40,000 people nationally face similar financial penalties for minor income discrepancies. The Liberal Democrat stance is plain: carers should not be punished for minor unintentional breaches of income thresholds. The current system is rigid and punitive, with a cliff edge that does nothing at all to incentivise work.

Earlier, I heard the former Secretary of State talking about the business of clawback, and whether it could be done retrospectively. Looking to the past, perhaps he needs to be reminded that with the furlough scheme, the previous Government failed to claw back millions and millions of pounds—indeed, the Public Accounts Committee reckoned £2.3 billion—that was incorrectly paid to employers whose employees continued to work while they were receiving furlough money. It is just like the former Government to go after the people at the bottom of the pile who are most in need, when it is the people who have been described today who most need the support. I hope that the Government will make the most of the independent inquiry that I am glad they have set up, and ensure that any changes incentivise work and make work pay.