The Department for Work and Pensions (DWP) has confirmed that it will consider the impact on Carer's Allowance in its proposed overhaul of Personal Independence Payment (PIP). The department is currently planning significant changes to PIP in the coming months, which could see payments replaced with vouchers and grants for treatment and equipment.

As PIP helps to combat the increased costs faced by disabled people, there is a notable overlap between PIP and Carer's Allowance. In order to be eligible for the allowance, the person being cared for must be receiving a disability benefit such as PIP to demonstrate their need for care.

Furthermore, some individuals on PIP can also claim Carer's Allowance if they are caring for a partner or child with disabilities.

However, if PIP payments are stopped, reduced or limited due to the proposed reforms, it could affect someone's eligibility for Carer's Allowance and as a result, the financial support they receive from the Government may also face a knock on effect.

Green Party MP Caroline Lucas (Brighton, Pavilion) questioned the DWP about whether it would consider the impact of PIP changes on Carer's Allowance as part of its current proposals. Statistics reveal that there are 3.5 million people claiming PIP and 991,000 people receiving Carer's Allowance, reports Birmingham Live.

Caroline voiced her worries about the potential effects of proposed Personal Independence Payment (PIP) reforms on unpaid carers and their ability to claim Carer's Allowance. Mims Davies, Minister for Disabled People, Health and Work, responded by assuring that the ongoing PIP consultation will take into account any possible impacts on those eligible for Carer's Allowance, currently set at £81.90 per week.

Ms Davies said: "Modernising Support for Independent Living: The Health and Disability Green Paper looks at different options to reshape the current welfare system so that we can provide better-targeted support to those who need it most. We are considering these options through our 12-week consultation which was published on Monday 29 April and will close on Monday 22 July at 11:59pm. Any possible impacts on unpaid carers and their eligibility to receive Carer's Allowance will be considered as necessary."

She also aimed to alleviate concerns about immediate changes to PIP or health assessments, stating: "There will be no immediate changes to PIP, or to health assessments. All scheduled PIP assessments and payments will proceed as normal, and claimants should continue to engage as usual and provide any necessary information or updates regarding their circumstances."

"We encourage everyone to respond to the consultation which can be found here so that we are able to hear from as many disabled people, people with health conditions, their representatives, and local stakeholders as possible on these important issues."

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A storm has brewed over Carer's Allowance as it hit headlines revealing that a staggering number of recipients were ordered to repay the benefit due to inadvertent breach of rules tied to income limits. The curbs dictate that eligible claimants cannot earn above £151 in a week.

Latest 2022-23 data reveal an astounding 26,700 carers were asked to refund the benefit for exceeding the earnings cap. Remarkably, over 800 of them were already in the midst of repaying amounts ranging between £5,000 and £20,000.

Even more daunting, 36 carers had to confront the mammoth task of returning north of £20,000 in Carer's Allowance.

The Department for Work and Pensions (DWP) weighed in stating: "We are committed to fairness in the welfare system, with safeguards in place for managing repayments, while protecting the public purse. Claimants have a responsibility to inform DWP of any changes in their circumstances that could impact their award, and it is right that we recover taxpayers' money when this has not occurred."

The Department for Work and Pensions (DWP) is contemplating a new strategy to tackle such issues by sending targeted text messages or emails to claimants when HMRC's earnings data suggests a potential overpayment. This proactive approach aims to prompt individuals to report any changes early on, preventing the accumulation of overpayments.

Yet, the date for implementing this new alert system remains uncertain.