DWP £1,300 penalty waived after unpaid carer left feeling 'blackmailed' by fraud prosecution threat

The penalty was imposed due to a £2,600 carer's allowance overpayment.

The former NHS psychologist from Brighton is one of 134,500 unpaid carers repaying £251million in carer's allowance overpayments, many of which accumulated because of DWP administrative failures.

Jacques incurred the overpayment after unwittingly continuing to claim £81.90 a week carer's allowance when she returned to work post-maternity leave.

The mother's earnings exceeded the £151 weekly limit, making her ineligible for the benefit.

At the time, Jacques was overwhelmed by hospital visits, navigating social care systems, and managing post-traumatic stress from birth complications.

She was caring "twice over" for her son Alex and her frail mother.

Although Jacques informed the DWP's universal credit unit about her return to work, the information was not shared with the carer's allowance department.

"I would not have had to go through any of this if the DWP had checked their emails," Jacques said.

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The DWP has now informed Jacques that the £1,300 charge will not be applied, though she must continue to repay the original overpayment.

However, Jacques expressed disappointment with the letter she received, which lacked an apology or explanation for the reversal.

"I can only assume the letter came on the back of the Guardian article and they were embarrassed," Jacques said.

She added: "The sad thing is, before the article was published, I was just another number in a database. What happens to people who don't get an article written about them?"

Jacques described the DWP's initial threat of prosecution as "like blackmail".

The case was reviewed earlier this year at the request of then Brighton Pavillion MP Caroline Lucas but officials had initially refused to reconsider the penalty.

The case highlights broader issues with carer's allowance overpayments.

Carer's allowance rules require repayment of the entire allowance if the weekly £151 earnings limit is exceeded, even by £1.

The DWP insists carers must report earnings breaches, despite holding this information. This policy has led to significant overpayments for many carers.

A DWP spokesperson stated: "We have reviewed Dr Jacques' case and removed the original administrative penalty applied to their overpayment.

"This Government has a duty to carefully managing taxpayer money and recoup any losses to the public purse."