Outstanding debt from Carer’s Allowance overpayments rose to more than £250m last year, according to the government’s spending watchdog.The National Audit Office (NAO) said the figure had increased by £100m since 2018/19.Charity Carers UK said the report was “further evidence of a broken system that is failing unpaid carers”. The government launched an independent review of overpayments in October, after some carers were forced to pay back thousands of pounds leaving many in financial hardship.The Department for Work and Pensions (DWP) paid £3.7bn in Carer’s Allowance to more than 900,000 claimants last year, according to the NAO report.If someone spends at least 35 hours a week caring for someone with an illness or disability they may be eligible for the allowance, which is currently £81.90 a week. To qualify, someone must not earn more than £151 per week. The threshold will rise to £196 a week from April.If a carer earns just a pound above this figure there is no taper rate and they are no longer eligible for any payment.The NAO said this created a “cliff-edge”, meaning significant overpayments can build up quickly. Claimants are required by law to inform the DWP promptly if their circumstances change.But the department has faced criticism for failing to prevent overpayments, despite its systems flagging when a claimant is earning too much.Some carers have told the BBC they were unaware they had exceeded the threshold until being informed years later, when the sums had run into thousands of pounds.Claimants earning above the permitted limit made up 58% of new overpayment cases last year. Other reasons for overpayments include the claimant no longer provi …
