Paul Lewis: new tax refund rules, pension increases, and a review of Carer's Allowance

Fairer fraud refunds

More people who have money stolen from their bank accounts should get it back under new rules that began on 7 October.

Banks are now obliged to refund the loss unless they can show ‘gross negligence’. If you are conned into helping thieves transfer money to what they call a ‘safe’ account, but which is in fact theirs, ask your bank to refund you.

If it argues, go to the Financial Ombudsman. The payment should come in a week – but can take seven weeks in ‘complex cases’.

In 2023, nearly 225,000 people lost £376 million and £120 million of that was never refunded. In future, almost all of it should be, though there is a cap of £85,000. But prevention is better than cure.

If you get a call from someone who says your money is at risk, it is – from them! Put the phone down without talking and they cannot rob you.

Pension rise in April

There will be a two-tier rise in the state pension in April. The main rates of the old and the new pension will rise by 4.1% to £176.45 and £230.25 a week respectively, widening the gap between them to nearly £2,800 a year. That increase is in line with earnings under the so-called triple lock.

Any extras, such as SERPS, graduated pension or extra for deferring, will rise by just 1.7% – the rate of inflation last September. Other benefits, such as Attendance Allowance, will also increase by 1.7% – less than £2 a week and barely £1 for many other benefits.

Carer’s review

The government is reviewing the rules about Carer’s Allowance and earnings. If a carer earns more than £151, they lose their Carer’s Allowance. Around 34,500 carers owe the Department for Work and Pensions (DWP) £250 million as a result.

From April, that earnings threshold will rise to around £196 a week or 16 hours on the new National Living Wage. And the government says it will look at how to support those who have huge debts to DWP.

Sadly, there was no mention of extending Carer’s Allowance to people on the state pension.

Winter cash cut-off

The last date to claim pension credit and get your £200 or £300 Winter Fuel Payment this winter is 21 December. Claim online or call 0800 99 1234, where a helpful DWP person will take the claim for you.