Millions missing out on £19billion worth of benefit support - what you can claim

01 May 2023 , 10:03

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Millions are missing out on financial support (Image: Getty Images)

Millions of households are missing out on £18.7billion worth of welfare benefits research by Policy in Practice has found.

Some low income households were found to be missing out on £4,000 worth of support each year.

The consultancy firm estimates that 1.2million households are eligible for but do not claim Universal Credit - resulting in £7.5billion going unclaimed each year.

Council Tax support is also going unclaimed with nearly three million households thought to be missing out on £2.8billion worth of support.

Alongside this, nearly £6billion worth of Carer's Allowance, Pension Credit, Child Benefit and Housing Benefit is not being claimed.

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Social tariffs are also not being utilised by low income households as £2billion worth of support for water, broadband and energy bills is not claimed.

Broadband social tariffs have the lowest take up, with 97% of eligible households missing out on the tariffs.

Policy in practice blame the "complexity" of the benefits system as one of the main reasons why people are not reaching out for help.

The system currently requires multiple application mechanisms across different organisations and sometimes households may need to make six or seven applications to receive benefits or cash support.

They also note that the lack of public awareness of what support is available for households, and the fear of being perceived by others as “benefit scroungers” all contribute to the low take up.

The study explained: "Claimants must become experts in the system’s intricacies and know which hoops to jump through, all while dealing with financial pressure.

"While some aspects of claim application are unavoidably complicated … the system as a whole needs to avoid adding extra pressure wherever possible."

The study does not include figures for disability benefits Personal Independence Payment (PIP) or Attendance Allowance (AA).

However, it estimated that if just 10% of PIP and AA went unclaimed, this would amount to £3.5billion a year.

Deven Ghelani, director of Policy in Practice said: "It is shocking that £19billion of benefits and support is unclaimed at any time, let alone during a cost of living crisis.

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“Missing out on eligible benefits could be the difference between households keeping their heads above water and feeling they are drowning."

A Department for Work and Pensions (DWP) spokesperson told the Guardian: “We are committed to helping vulnerable households and ensuring everyone claims the support they are entitled to.

"The independent benefit calculators on GOV.UK and the free Help to Claim support from Citizens Advice are available to help people check their eligibility and claim universal credit.

“We also regularly promote and raise awareness of the benefits available to the public including through stakeholder support and the Help for Households campaign, with our network of over 600 jobcentres standing ready to help those who need it.”