Martin Lewis has warned that Carer's Allowance rules can leave people out of pocket
Martin Lewis has sounded the alarm for individuals receiving a specific government benefit, cautioning that they could be hit with a bill of £820 due to a "cliff edge" in the way the benefit operates. The MoneySavingExpert founder criticised the Carer's Allowance rules, highlighting that minor overpayments or slight increases in wages could result in substantial financial repercussions.
The benefit offers up to £81.90 weekly, but claimants must earn less than £151 per week to qualify. Earning even a penny over this threshold results in losing the entire benefit amount, and to make matters worse, the government will demand repayment of the funds, regardless of whether they have been spent.
This sharp cut-off has been described as perverse, differing from other benefits which taper off gradually. The problem has been addressed previously in communications to the Chancellor, noting that carers, often stressed and overworked, can accidentally breach the threshold with minor pay increases, like the minimum wage rise, leading them to owe large sums due to overpayment.
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