A man who lost his home after being prosecuted by the DWP says he is "frightened to put my head on the pillow".
George Henderson claims he made an "honest mistake" by failing to declare his income working as a taxi driver.
The 64-year-old had been caring for his son, who has learning difficulties.
But his work as a taxi driver was not picked up by the DWP for almost a decade which resulted in a significant amount of overpayments owed back.
DWP take carers inheritance away because of "overpayment."
— Dan White : Disability Campaigner & Author ♿️ (@Danwhite1972) April 4, 2024
In other news, what is happening with the £37 BN Dido Harding was responsible for? Or the £9.9bn of the £13.6bn worth of PPE that was bought that was unusable? Or the £120 BN lost in tax evasion?
DWP? Hello?
The government said it was "right" it sought to claim back taxpayers' money.
He was prosecuted by the Department for Work and Pensions (DWP) and found guilty of benefit fraud, resulting in a suspended prison sentence with requirements to wear an electronic tag.
Mr Henderson told BBC: "I've ticked a box, mistakenly and honestly, incorrectly. But it took 10 years for them to find that.
"I was degraded as a criminal. I was Jack the lad, laughing, joking, but that's gone."
Emily Holzhausen, from the charity Carers UK, told the BBC: "It's not acceptable that people are building these overpayments without necessarily realising.
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"It's really important that the government invests in a modern system for carers' allowance."
Mr Henderson, who now lives in supported accommodation in Walton-le-Dale, said: "I had a lovely two-bedroom house, worked hard to keep my home, and they just came and they took it.
"I've been through hell, for five years"
He told the BBC he had attempted suicide and was awaiting trauma therapy.
"As every day goes by, I'm frightened to put my head on the pillow, because I have really bad nightmares," he added.
The DWP said Carer's Allowance claimants have a responsibility to inform it of any changes in their circumstances.
"It is right that we recover taxpayers' money when this has not occurred", a spokesperson said.
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