New analysis by Policy in Practice suggests that the total amount of unclaimed income-related benefits and social tariffs is nearly £19 billion a year. In a newly published report, it estimates that “£7.5 billion of Universal Credit is unclaimed by 1.2 million eligible households and £2.9 billion of Council Tax Support is unclaimed by over 2.7 million eligible households each year”.
In a blog post on the think tank’s website, it also highlighted that social tariffs are significantly underclaimed and found that broadband social tariffs have the lowest take up, with 97 per cent of eligible households missing out on the reduced tariffs. It urged people on means-tested benefits to check for eligibility with their provider.
MoneySavingExpert.com has reviewed the report and broken down the key areas that are being underclaimed, you can view this here. It’s important to note that people in work could also be missing out on additional financial support.
Summary of underclaimed means-tested benefits
- Universal Credit: 1.25m missing out on an average £9,600 each year
- Council Tax support : Up to 3m households missing out
- Carer’s Allowance: half a million unpaid carers missing out on up to £4,000 each year
- Pension Credit : 850,000 pensioner households missing out on £3,500 each year
- Child Benefit: 750,000 families missing out on an average £2,075 each year
- Broadband social tariffs: 5.3m households missing out on switching to a tariff from as little as £12
Labour’s shadow work and pensions secretary, Jonathan Ashworth MP recently asked the Department for Work and Pensions (DWP) what steps it is taking to “reduce the annual amount of unclaimed welfare benefits”.
In a written response, Minister for Employment Guy Opperman MP, said the the DWP “ regularly promotes and raises awareness of the benefits available to the public” including through stakeholder support and the Help for Households campaign, along with its network of over 600 Jobcentres.
He also highlighted that since the beginning of the Pension Credit awareness campaign in April 2022, weekly applications for the benefit designed to help pensioners on a low income have increased by an average of 73 per cent compared to the year average before the campaign began (April 2021 to March 2022).
Adding: “We have used various channels to promote Pension Credit including advertising on television and radio and social media promotion.”
Mr Opperman continued: “For Universal Credit, 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.”
An extra £22 million investment was announced in March to extend free and impartial support through Help to Claim to help people to make a Universal Credit claim.
He said: “This additional investment will ensure that support is available to help people make a new Universal Credit claim and manage their claim until they receive their first payment.”
Online benefits calculators
Online benefit calculators quickly work out if you are missing out on any benefits and best of all, they are completely free, independent and confidential to use - so there’s nothing to lose.
In just a few minutes you could find out how much you may be able to claim in extra support, just by entering details about yourself, your residential status, your working status and any savings you have.
You can use an independent benefits calculator to find out:
- What benefits you could get
- How to claim
- How your benefits will be affected if you start work
Where to find help
Advice Direct Scotland
This online tool is the first to fully integrate devolved benefits, including the Scottish Child Payment.
It provides a free and impartial assessment of entitlement to a range of benefits such as Universal Credit, crisis grants and support payments.
Turn2us
Information on income-related benefits, Tax Credits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work or change your working hours.
Policy in Practice
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit, how these are calculated and how your benefits will be affected if you start work or change your working hours.
entitledto
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work.
What you will need
You will need accurate information about your:
Savings
Income, including your partner’s
Existing benefits and pensions (including anyone living with you)
Outgoings (such as rent, mortgage, childcare payments)
Latest Council Tax bill
To keep up to date with the latest benefits news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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