Britons hoping to boost their festive finances with a bit of extra cash in the run-up to Christmas have been warned they could be in for a nasty surprise. Many are unaware that taking on additional work or accepting certain payments could trigger a reassessment of their benefits, with the Department for Work and Pensions (DWP) potentially demanding the money back later on.
The Carer’s Allowance is a benefit Brits can claim if they care for someone for at least 35 hours a week. It is worth £83.30 a week, and to be eligible for it, you must earn less than £196 a week after tax. However, the rules stipulate that if you earn just 1p more than this amount, you must repay the entire week’s allowance. This is especially important for those hoping to pick up a few extra shifts at work over the Christmas period, or selling unwanted items on websites like Vinted or eBay.
Under the rules, earning more than the allowance for just one month could result in a bill of £333.20.
According to a review by the DWP published last week, hundreds of thousands of families have been overpaid Carer’s Allowance by mistake due to this threshold. The department is now asking them to return the cash they have been overpaid, with some facing bills of thousands of pounds.
Brits can use a benefits calculator, such as EntitledTo or Turn2Us, to check if their earnings would put them over the limit. You can also contact your local Citizens Advice for individual help and guidance.
Not everyone is trying to take away Brits’ money this Christmas, however. In fact, one UK bank is actually offering new customers a free £200 in time for the festive period if they make one simple switch.
For those customers willing to leave their current account, Lloyds is offering new customers who open a Club Lloyds, Club Lloyds Silver, Club Lloyds Platinum or Lloyds Premier account an impressive £200. To open one of the eligible Lloyds accounts, you must do so online or via the bank’s app. During this process, you will be asked if you would like to switch your account through the Current Account Switch Service, which you must do. Customers are required to transfer at least three active direct debits from their old account as part of the switch process.
If all requirements are met, the cash will be paid into your account within 10 working days of your switch being completed. The deadline for this cash offer is December 17, 2025.
