A significant review into Carer's Allowance is underway as the government seeks to address overpayments that have plunged many caregivers into debt. Hear from a mother facing an £11,000 repayment struggle. Meanwhile, a young man's distress over his disappearing Child Trust Fund highlights the hidden fees plaguing these accounts. The podcast also discusses the looming threat of rising fuel costs and scams targeting those fearful of winter heating expenses, offering essential tips for financial navigators.
The government is pursuing over 100,000 carers for £250 million in alleged Carer's Allowance overpayments, exacerbating financial strain for families like Karina's.
Child Trust Funds are under scrutiny due to excessive administration fees, leaving young adults unaware of lost savings, highlighting the need for improved transparency.
Deep dives
The Challenge for Carers and Overpaid Benefits
The government is pursuing over 100,000 carers for around £250 million in alleged overpaid benefits, particularly focusing on Carer's Allowance, which is intended for individuals looking after severely disabled persons. This allowance can create financial strain since it has a strict earnings limit; exceeding it can result in hefty debts. Many carers, often unaware of their earnings exceeding the limit, face significant financial repercussions after being told to repay large overpayments that could accumulate over years. Many people advocate for a reform of this system to prevent the exploitation of those providing essential care while also suggesting that the accumulated debts of individuals like Carina should be considered for cancellation to alleviate their financial burden.
Concerns Over Child Trust Funds
Child Trust Funds, created to help children from low-income families, are facing scrutiny as many young adults are unaware of these savings accounts, leading to significant financial losses. For instance, one young man discovered that a £250 investment had dwindled to just £12.39 at maturity, primarily due to excessive fees. Investigations revealed the investment management company had charged exorbitant administration fees, leaving families feeling helpless and outraged. This situation highlights the necessity for greater transparency and support from financial institutions and the government to ensure beneficiaries are properly informed and compensated.
Potential Impact of Fuel Duty Increases
The potential for increased fuel duties in the upcoming budget could significantly impact household finances, as over 50% of petrol prices is already made up of taxes. Current discussions suggest that resuming previous fuel duty rates could add an additional £2 for an average trip to the gas station, further straining financial resources amid rising living costs. Consumer advocates warn that such increases disproportionately affect working-class citizens who rely on vehicles for employment and daily errands. The ongoing debate emphasizes the need for equitable tax policies that do not disproportionately burden specific demographics, particularly during economically challenging times.
It was a big week for carers as the Government announced an independent review into Carer's Allowance overpayments after families were told to pay back thousands of pounds, often pushing them into debt.
The review will look at what happened, but in the meantime the Department for Work and Pensions has told Money Box it will continue to collect almost quarter of a billion pounds it says it's owed from more than a hundred thousand carers. We hear from Karina who cares for her 22-year-old daughter and ended up in £11,000 worth of debt. The DWP said it is committed to working with anyone struggling with repayment terms.
A major investment firm has said it will review its Child Trust Fund accounts after Money Box revealed one young man's £250 investment had all but disappeared when he claimed it at 18 due to high administration charges.
In the run up to the Chancellor's budget we look at fuel duty and whether the 5p cut could be scrapped.
And beware the thieves pretending to offer a solution to lost Winter Fuel Payments.
Presenter: Paul Lewis
Reporters: Dan Whitworth and Emma Smith
Researcher: Jo Krasner
Editor: Sarah Rogers
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