Asked by: Marsha De Cordova (Labour - Battersea)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether her Department plans to conduct a review of eligibility criteria for carer’s allowance as a result of the number of carers that have been overpaid.
Answered by Sarah Newton
The primary purpose of Carer’s Allowance (CA) is to provide a measure of financial support and recognition for people who give up the opportunity of full-time employment in order to provide regular and substantial care for a severely disabled person. Around 850,000 carers are being supported through CA at a cost of over £2.8 billion a year (2018/19 forecast expenditure). The rate of CA has increased from £53.90 to £64.60 a week, with a further increase to £66.15 proposed for April 2019 subject to Parliamentary approval, meaning an additional £635 a year for carers since 2010. We continue to keep the key elements of CA under review to ensure it is meeting the needs of carers.
As with all benefits we also continually review detailed operations. This includes reminding carers of the importance of reporting changes of circumstances (including to their earnings) and introducing new technology to help identify and prevent overpayments in the first place.
Carers will also be a fundamental part of the Government’s upcoming Social Care Green Paper. A sustainable settlement for social care will not be possible without focussing on how our society supports carers.
Asked by: Ruth George (Labour - High Peak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how much has been charged in penalties for overpayment of carers allowance in each of the last five years.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The Department for Work and Pensions (DWP) has two different financial penalties that can be imposed. The first is the Civil Penalty. Where our enquiries show that a claimant has failed to provide accurate information as part of their benefit claim or in connection with an award of benefit, they have not taken reasonable steps to correct the error and their action has resulted in an overpayment of over £65, DWP currently charges a £50 Civil Penalty.
Financial Year | Monetary value of Civil Penalties |
2014/2015 | £216,450 |
2015/2016 | £356,550 |
2016/2017 | £463,200 |
2017/2018 | £427,750 |
2018 YTD | £330,400 |
The Second type of financial penalty is the Administrative Penalty, which may be offered to a person as an alternative to prosecution. Currently the minimum amount of the Administrative Penalty is £350 or 50% of the recoverable overpayment, whichever is greater, up to a maximum of £5,000.
It is not possible to provide the total value of administrative penalties imposed by DWP in the last 5 years as this information is not readily available and could only be provided at disproportionate cost.
Asked by: Ruth George (Labour - High Peak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many cases of overpayment of Carers Allowance her Department is pursuing; and of those cases how many relate to (a) 51 or fewer, (b) 52 to 103, (c) 104 to 155, (d) 156 to 207, (e) 208 to 259, (f) 260 to 311, (g) 312 to 363 and (h) 364 or more weeks of overpayment.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
Data shows that we are currently pursuing 69,609 Carer’s Allowance overpayments. However, not all these debts are currently in recovery as we can only recover one benefit debt at a time.
The information requested relating to the number of weeks of overpayment is not readily available and could only be provided at disproportionate cost.
Asked by: Ruth George (Labour - High Peak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many cases of overpayment of carers allowance are currently listed before the courts.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The requested information is not readily available and could only be provided at disproportionate cost.
Asked by: Ruth George (Labour - High Peak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many cases of overpayment of carers allowance have been taken to court under the Proceeds of Crime Act for each of the last five years.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The requested information is not readily available and could only be provided at disproportionate cost.
Asked by: Ruth George (Labour - High Peak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many cases of overpayment of Carers Allowance have been taken to court in each of the last five years.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The requested information is not readily available and could only be provided at disproportionate cost.
Asked by: Ruth George (Labour - High Peak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many cases of overpayment of carers allowance her Department has sought to collect in each of the last 10 years; and what the average amount of overpayment recovered in each of those years was.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The Department for Work and Pensions (DWP) recognises and appreciates the vital contribution made by informal carers who provide invaluable support for relatives, partners, friends and neighbours who may be ill, frail or disabled. We also recognise and value the work that carer’s organisations undertake for and on behalf of carers.
Since 2010 the rate of Carer’s Allowance has increased from £53.90 to £64.60 a week, meaning an additional £550 a year for carers. By 2022/23 we are forecast to spend around £3.7 billion a year on CA, a real terms increase of more than a third since 2016/17.
DWP has a duty to protect public funds and an obligation to ensure that, overpaid benefit payments are recovered in accordance with the appropriate social security legislation.
In September 2018 DWP introduced the Verify Earnings and Pensions (VEP) system for use in Carers Allowance. The VEP service presents earnings and employment data to users, with an automated alerts service generating notifications of earnings or pensions related changes. This allows benefit awards to be updated far more quickly.
Where there are discrepancies DWP will contact the claimant for further information. This activity is part of the normal claims handling and maintenance process.
DWP has a Carers Allowance (CA) Fraud and Error Framework which addresses potential fraud and error losses in CA. Activity is based on CA overpayment data. This data shows that the main causes of errors are earnings and to a lesser extent, change of entitlement and hospitalisation. Individual benefit strategies have been developed in order to target these risks types
Data is only available from 2011/12. Table 1 below shows the volume and value of CA new debt overpayments deemed recoverable for the period available up to 2017/18. Table 2 shows the monetary value of CA overpayment recoveries in each year. Please note, recoveries in a financial year won’t necessarily correspond to the new debts raised within that year.
DWP has different deduction rates to be applied in different circumstances and these rates can vary dependent upon a claimant’s particular circumstances. Because of this it would not be possible to provide a meaningful average recovery amount.
Table 1
Financial Year | Count of New CA Debts | Value of New CA Debts Raised in Year |
2011/12 | 30.7k | £39.32m |
2012/13 | 22.4k | £28.27m |
2013/14 | 19.1k | £25.86m |
2014/15 | 14.4k | £18.01m |
2015/16 | 14.5k | £16.74m |
2016/17 | 21.4k | £19.01m |
2017/18 | 18.1k | £18.18m |
Table 2
Financial Year | Value of CA Debt Recovered in Year |
2011/12 | £18.02m |
2012/13 | £18.65m |
2013/14 | £19.28m |
2014/15 | £19.60m |
2015/16 | £19.01m |
2016/17 | £21.12m |
2017/18 | £20.91m |
The Government keeps the CA earnings limit under regular review. In April 2018, the CA earnings limit increased from £116 to £120 a week. This 3.4% increase was higher than average earnings growth (Sep 17). In the Economic and fiscal outlook (March 2017) the OBR forecast that average earnings would increase by around 7.5% between 2015 and 2018, whereas we will have increased the CA earnings limit by around 9%.
Table 3 below shows a breakdown of the recoverable CA overpayment volumes by reason for the same period available. It should be noted that not all debts will be cleared in the year in which they have been raised.
Table 3
Financial Year | Count of CA Debts | Reason for CA Overpayment |
2011/12 | 5.5k | Ceased to Care 35hours |
| 9.0k | Earnings over CA Limit |
| 0.3k | Full Time Education |
2012/13 | 5.0k | Ceased to Care 35hours |
| 8.0k | Earnings over CA Limit |
| 0.3k | Full Time Education |
2013/14 | 5.1k | Ceased to Care 35hours |
| 9.2k | Earnings over CA Limit |
| 0.4k | Full Time Education |
2014/15 | 4.2k | Ceased to Care 35hours |
| 6.7k | Earnings over CA Limit |
| 0.3k | Full Time Education |
2015/16 | 4.6k | Ceased to care 35hours |
| 6.5k | Earnings over CA Limit |
| 0.2k | Full Time Education |
2016/17 | 7.5k | Ceased to Care 35hours |
| 8.7k | Earnings over CA Limit |
| 0.4k | Full Time Education |
2017/18 | 4.9k | Ceased to Care 35hours |
| 9.3k | Earnings over CA Limit |
| 0.2k | Full Time Education |
Data on specific earnings thresholds as requested is not recorded.
Asked by: Ruth George (Labour - High Peak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many cases of recovered overpayments of carers allowance were due to (a) 35 hours of care per week not being done, (b) earnings in excess of the threshold and (c) carers taking up an education course exceeding 21 hours of study time in each of the last 10 years.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The Department for Work and Pensions (DWP) recognises and appreciates the vital contribution made by informal carers who provide invaluable support for relatives, partners, friends and neighbours who may be ill, frail or disabled. We also recognise and value the work that carer’s organisations undertake for and on behalf of carers.
Since 2010 the rate of Carer’s Allowance has increased from £53.90 to £64.60 a week, meaning an additional £550 a year for carers. By 2022/23 we are forecast to spend around £3.7 billion a year on CA, a real terms increase of more than a third since 2016/17.
DWP has a duty to protect public funds and an obligation to ensure that, overpaid benefit payments are recovered in accordance with the appropriate social security legislation.
In September 2018 DWP introduced the Verify Earnings and Pensions (VEP) system for use in Carers Allowance. The VEP service presents earnings and employment data to users, with an automated alerts service generating notifications of earnings or pensions related changes. This allows benefit awards to be updated far more quickly.
Where there are discrepancies DWP will contact the claimant for further information. This activity is part of the normal claims handling and maintenance process.
DWP has a Carers Allowance (CA) Fraud and Error Framework which addresses potential fraud and error losses in CA. Activity is based on CA overpayment data. This data shows that the main causes of errors are earnings and to a lesser extent, change of entitlement and hospitalisation. Individual benefit strategies have been developed in order to target these risks types
Data is only available from 2011/12. Table 1 below shows the volume and value of CA new debt overpayments deemed recoverable for the period available up to 2017/18. Table 2 shows the monetary value of CA overpayment recoveries in each year. Please note, recoveries in a financial year won’t necessarily correspond to the new debts raised within that year.
DWP has different deduction rates to be applied in different circumstances and these rates can vary dependent upon a claimant’s particular circumstances. Because of this it would not be possible to provide a meaningful average recovery amount.
Table 1
Financial Year | Count of New CA Debts | Value of New CA Debts Raised in Year |
2011/12 | 30.7k | £39.32m |
2012/13 | 22.4k | £28.27m |
2013/14 | 19.1k | £25.86m |
2014/15 | 14.4k | £18.01m |
2015/16 | 14.5k | £16.74m |
2016/17 | 21.4k | £19.01m |
2017/18 | 18.1k | £18.18m |
Table 2
Financial Year | Value of CA Debt Recovered in Year |
2011/12 | £18.02m |
2012/13 | £18.65m |
2013/14 | £19.28m |
2014/15 | £19.60m |
2015/16 | £19.01m |
2016/17 | £21.12m |
2017/18 | £20.91m |
The Government keeps the CA earnings limit under regular review. In April 2018, the CA earnings limit increased from £116 to £120 a week. This 3.4% increase was higher than average earnings growth (Sep 17). In the Economic and fiscal outlook (March 2017) the OBR forecast that average earnings would increase by around 7.5% between 2015 and 2018, whereas we will have increased the CA earnings limit by around 9%.
Table 3 below shows a breakdown of the recoverable CA overpayment volumes by reason for the same period available. It should be noted that not all debts will be cleared in the year in which they have been raised.
Table 3
Financial Year | Count of CA Debts | Reason for CA Overpayment |
2011/12 | 5.5k | Ceased to Care 35hours |
| 9.0k | Earnings over CA Limit |
| 0.3k | Full Time Education |
2012/13 | 5.0k | Ceased to Care 35hours |
| 8.0k | Earnings over CA Limit |
| 0.3k | Full Time Education |
2013/14 | 5.1k | Ceased to Care 35hours |
| 9.2k | Earnings over CA Limit |
| 0.4k | Full Time Education |
2014/15 | 4.2k | Ceased to Care 35hours |
| 6.7k | Earnings over CA Limit |
| 0.3k | Full Time Education |
2015/16 | 4.6k | Ceased to care 35hours |
| 6.5k | Earnings over CA Limit |
| 0.2k | Full Time Education |
2016/17 | 7.5k | Ceased to Care 35hours |
| 8.7k | Earnings over CA Limit |
| 0.4k | Full Time Education |
2017/18 | 4.9k | Ceased to Care 35hours |
| 9.3k | Earnings over CA Limit |
| 0.2k | Full Time Education |
Data on specific earnings thresholds as requested is not recorded.
Asked by: Ruth George (Labour - High Peak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many of the prosecutions relating to overpaid carer's allowance related to (a) 35 hours of care per week not being carried out, (b) earnings in excess of the threshold and (c) carers taking up an education course exceeding 21 hours of study time in each of the last 10 years.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The Department for Work and Pensions (DWP) has a duty to protect public funds and an obligation to ensure that, overpaid benefit payments are recovered in accordance with the appropriate social security legislation.
DWP does not routinely publish prosecution statistics. The information is not available at a granular level. The level of detail requested could be provided only at disproportionate cost.
Asked by: Ruth George (Labour - High Peak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many cases of recovered overpayments of carers allowance due to earnings in excess of the threshold related to earnings which exceeded the threshold by (a) less than 10 per cent and (b) less than 20 per cent in each of the last 10 years.
Answered by Justin Tomlinson - Minister of State (Department for Energy Security and Net Zero)
The Department for Work and Pensions (DWP) recognises and appreciates the vital contribution made by informal carers who provide invaluable support for relatives, partners, friends and neighbours who may be ill, frail or disabled. We also recognise and value the work that carer’s organisations undertake for and on behalf of carers.
Since 2010 the rate of Carer’s Allowance has increased from £53.90 to £64.60 a week, meaning an additional £550 a year for carers. By 2022/23 we are forecast to spend around £3.7 billion a year on CA, a real terms increase of more than a third since 2016/17.
DWP has a duty to protect public funds and an obligation to ensure that, overpaid benefit payments are recovered in accordance with the appropriate social security legislation.
In September 2018 DWP introduced the Verify Earnings and Pensions (VEP) system for use in Carers Allowance. The VEP service presents earnings and employment data to users, with an automated alerts service generating notifications of earnings or pensions related changes. This allows benefit awards to be updated far more quickly.
Where there are discrepancies DWP will contact the claimant for further information. This activity is part of the normal claims handling and maintenance process.
DWP has a Carers Allowance (CA) Fraud and Error Framework which addresses potential fraud and error losses in CA. Activity is based on CA overpayment data. This data shows that the main causes of errors are earnings and to a lesser extent, change of entitlement and hospitalisation. Individual benefit strategies have been developed in order to target these risks types
Data is only available from 2011/12. Table 1 below shows the volume and value of CA new debt overpayments deemed recoverable for the period available up to 2017/18. Table 2 shows the monetary value of CA overpayment recoveries in each year. Please note, recoveries in a financial year won’t necessarily correspond to the new debts raised within that year.
DWP has different deduction rates to be applied in different circumstances and these rates can vary dependent upon a claimant’s particular circumstances. Because of this it would not be possible to provide a meaningful average recovery amount.
Table 1
Financial Year | Count of New CA Debts | Value of New CA Debts Raised in Year |
2011/12 | 30.7k | £39.32m |
2012/13 | 22.4k | £28.27m |
2013/14 | 19.1k | £25.86m |
2014/15 | 14.4k | £18.01m |
2015/16 | 14.5k | £16.74m |
2016/17 | 21.4k | £19.01m |
2017/18 | 18.1k | £18.18m |
Table 2
Financial Year | Value of CA Debt Recovered in Year |
2011/12 | £18.02m |
2012/13 | £18.65m |
2013/14 | £19.28m |
2014/15 | £19.60m |
2015/16 | £19.01m |
2016/17 | £21.12m |
2017/18 | £20.91m |
The Government keeps the CA earnings limit under regular review. In April 2018, the CA earnings limit increased from £116 to £120 a week. This 3.4% increase was higher than average earnings growth (Sep 17). In the Economic and fiscal outlook (March 2017) the OBR forecast that average earnings would increase by around 7.5% between 2015 and 2018, whereas we will have increased the CA earnings limit by around 9%.
Table 3 below shows a breakdown of the recoverable CA overpayment volumes by reason for the same period available. It should be noted that not all debts will be cleared in the year in which they have been raised.
Table 3
Financial Year | Count of CA Debts | Reason for CA Overpayment |
2011/12 | 5.5k | Ceased to Care 35hours |
| 9.0k | Earnings over CA Limit |
| 0.3k | Full Time Education |
2012/13 | 5.0k | Ceased to Care 35hours |
| 8.0k | Earnings over CA Limit |
| 0.3k | Full Time Education |
2013/14 | 5.1k | Ceased to Care 35hours |
| 9.2k | Earnings over CA Limit |
| 0.4k | Full Time Education |
2014/15 | 4.2k | Ceased to Care 35hours |
| 6.7k | Earnings over CA Limit |
| 0.3k | Full Time Education |
2015/16 | 4.6k | Ceased to care 35hours |
| 6.5k | Earnings over CA Limit |
| 0.2k | Full Time Education |
2016/17 | 7.5k | Ceased to Care 35hours |
| 8.7k | Earnings over CA Limit |
| 0.4k | Full Time Education |
2017/18 | 4.9k | Ceased to Care 35hours |
| 9.3k | Earnings over CA Limit |
| 0.2k | Full Time Education |
Data on specific earnings thresholds as requested is not recorded.