New analysis indicates that seven million households are forgoing a collective £24 billion in potential financial assistance due to unclaimed benefits and social tariffs.
The research, conducted by Policy in Practice, a social policy and data analytics firm, identifies awareness, complexity, and stigma as key impediments preventing eligible individuals from claiming support.
This comprehensive analysis encompasses a range of benefits available across England, Scotland, and Wales, including Universal Credit and Pension Credit, local authority assistance such as free school meals and council tax support, and social tariffs offered by water, energy, and broadband providers.
The government has stated that it conducts public awareness campaigns to promote benefit uptake and highlighted the availability of the free Help to Claim service.
Andrea Paterson, residing in London, successfully encouraged her mother, Sally, to apply for Attendance Allowance on behalf of her father, Ian, last December, after learning about the benefit on Radio 4’s Money Box.
Ian, who sadly passed away in May, was experiencing poor health at the time. He and Sally qualified for the higher rate of Attendance Allowance, amounting to £110 per week, which significantly improved their financial situation, according to Andrea.
“£110 per week is a substantial amount, particularly as they were no longer receiving the Winter Fuel Payment,” she stated.
“My Mum’s immediate reaction was that it would compensate for the loss of the Winter Fuel Payment, which was incredibly beneficial.”
“Pensioners, in general, are often concerned about finances. I believe it alleviated some of that anxiety and enabled them to maintain a warmer home.”
Policy in Practice’s latest report estimates that £24.1 billion in benefits and social tariffs will remain unclaimed in the 2025-26 fiscal year.
Previous estimates projected £23 billion in unclaimed benefits for 2024-25 and £19 billion for the preceding year, although this year’s calculations incorporate a more detailed methodology.
“The primary barriers to claiming are awareness, complexity, and stigma,” explained Deven Ghelani, founder and chief executive of Policy in Practice.
“Regarding awareness, many individuals are simply unaware of the existence of these benefits or, if they are aware, they immediately assume they are ineligible.”
“Complexity then presents a challenge, as individuals struggle to complete the necessary forms and provide the required evidence. While they may manage to do so once, the prospect of repeating the process three, four, five, six, or even seven times, depending on the potential support available, can be overwhelming.”
“Finally, stigma plays a role, as individuals may feel that these benefits are not intended for them or they may lack trust in the organizations administering the support.”
Despite the significant amount of unclaimed financial support, the report highlights areas of progress.
An increasing number of older individuals are now claiming Pension Credit, and this trend is expected to continue.
Furthermore, some local authorities are successfully reaching 95% of students eligible for free school meals through improved data utilization.
Government figures indicate a projected expenditure of £316.1 billion on the social security system in England, Scotland, and Wales in 2025-26, representing 10.6% of GDP and 23.5% of total government spending.
Addressing concerns about the size of the benefits bill, Mr. Ghelani stated, “It is not sustainable to rely on the complexity of the system to generate savings.”
“On the one hand, these systems are designed to provide support to individuals, while on the other hand, claiming that support is made difficult. This is inherently illogical.”
A government spokesperson commented, “We are committed to ensuring that everyone receives the support they are entitled to by promoting benefits through public campaigns and funding the free Help to Claim service.”
“We are also focused on developing skills and creating opportunities to enable more people to secure good, stable employment, while ensuring that the welfare system remains available for those who need it.”
The recommendation for those who believe they may be eligible is to apply, particularly for support such as Pension Credit, which serves as a gateway benefit and can unlock access to other forms of financial assistance for those in need.
Robin, from Greater Manchester, shared with the BBC that claiming Pension Credit has been essential to his financial well-being.
“Pension Credit is vital in enabling me to survive financially,” he explained.
“[Furthermore,] because I receive Pension Credit, I am exempt from council tax, I receive free dental treatment, a contribution towards my eyeglasses, and I am eligible for the Warm Home Discount Scheme.”
Keith Williams reports that he relies on a food bank as his monthly £368 benefit payment lasts “about a week”.
In June, nearly eight million individuals received Universal Credit, with 83.6% being British and Irish nationals.
Legislation implementing certain cuts to Universal Credit is projected to become law within a month.
Individuals can verify whether their MP voted in favor of or against the Universal Credit and Personal Independence Payment Bill.
Joshua Reeves, who has cerebral palsy, expresses concerns that welfare changes will create a “two-tier benefit system”.