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The latest news from the world of personal finance plus advice for those trying to make the most of their money.

Money Box: Carers Allowance and Minimum Payments on Credit Cards

27/04/2024

Carers Allowance and Minimum Payments on Credit Cards

BBC Radio 4 - Money Box, Carers Allowance and Minimum Payments on Credit Cards

Calls for urgent action to help thousands of unpaid carers in debt to DWP.

We report on calls for the government to take urgent action to stop carers unwittingly working up thousands of pounds of debt in overpayments of Carer's Allowance.

A senior MP has told Money Box that the government must take urgent action to stop carers working up thousands of pounds of debt after unwittingly receiving overpayments of Carer's Allowance. Unpaid carers, who look after a loved one full time, are entitled to nearly £82 per week in Carer's Allowance. On top of that they can earn up to £151 take home pay. But stray above that earnings limit, even by just a few pence, and they lose the full allowance. The Department for Work and Pensions is alerted on a month by month basis when this happens, but in some cases carers were not told of their mistake for years. Labour MP Stephen Timms, Chair of the Work and Pensions Select Committee says it should never have taken so long for carers to be notified. 
The UK's biggest credit card provider, Barclaycard, is cutting minimum payments on its card to 1% from July. It is not the only credit card provider to allow 1% minimum payments, and Barclaycard says it's made the changes to increase flexibility for customers. We look at what it means in practice for customers, in terms of how much more you'll ultimately pay in interest and how long it'll take to pay off the debt. 
And we return to the subject of ISAs - Individual Savings Accounts. New changes this month should mean that customers can open multiple ISAs of the same type in the same tax year, and make partial transfers of funds between them. Money Box has learnt that many of the biggest ISA providers in the UK are not yet offering customers these new freedoms, why?

Presenter: Paul Lewis
Reporter: Dan Whitworth
Researchers: Sandra Hardial and Jo Krasner
Studio Producer: Craig Henderson
Editor: Beatrice Pickup

(first broadcast on Saturday 27th April 2024)

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