£24 Billion Left on the Table: Why Millions Are Missing Out on Crucial Financial Support
A staggering £24.1 billion in benefits and social tariffs are predicted to go unclaimed in 2025-26 – enough to significantly ease the financial strain on seven million households. This isn’t simply a matter of oversight; it’s a systemic failure to connect people with the support they’re entitled to, and a problem poised to worsen as the cost of living continues to fluctuate.
The Three Barriers to Accessing Support
New analysis from Policy in Practice pinpoints three core obstacles preventing individuals and families from claiming what’s rightfully theirs: awareness, complexity, and stigma. Many simply aren’t aware of the range of assistance available, from Universal Credit and Pension Credit to local authority support like free school meals and discounted water, energy, and broadband bills.
But even when awareness exists, the application process itself can be daunting. “Complexity, so being able to complete the form, being able to provide the evidence…people just run out of steam,” explains Deven Ghelani, founder and CEO of Policy in Practice. The need for repeated applications for different support schemes adds to the burden, creating a significant barrier for those already struggling.
Perhaps most subtly, stigma prevents many from seeking help. A lingering sense that claiming benefits is a sign of failure, or a distrust of the administering organizations, keeps eligible individuals from accessing vital funds. This is particularly prevalent amongst older generations, as highlighted by the story of Andrea Paterson, who encouraged her mother to apply for Attendance Allowance for her father.
Attendance Allowance: A Lifeline for Families
Andrea’s experience underscores the tangible impact of claiming available support. After learning about Attendance Allowance on Radio 4’s Money Box, she persuaded her mother to apply on behalf of her father, who qualified for the higher rate of £110 per week. “£110 per week is a lot of money,” Andrea noted, “and it did allow them to keep the house warmer.” This real-world example demonstrates how even a single benefit can alleviate financial pressure and improve quality of life.
The Rise of ‘Gateway Benefits’ and Data-Driven Solutions
While the overall picture remains concerning, there are signs of progress. Pension Credit claims are increasing, and some local authorities are achieving impressive rates – up to 95% – in identifying students eligible for free school meals through improved data utilization. This highlights the power of proactive outreach and targeted support.
Pension Credit is increasingly recognized as a crucial “gateway benefit.” As Robin, from Greater Manchester, shared with the BBC, receiving Pension Credit unlocks access to a cascade of additional support, including council tax exemption, free dental treatment, and assistance with spectacles and heating costs. This demonstrates the multiplier effect of claiming even a single benefit.
Future Trends: Automation, Proactive Outreach, and Personalized Support
Looking ahead, several trends are likely to shape the landscape of benefits access. The government’s investment in the Help to Claim service is a step in the right direction, but more is needed. We can expect to see increased automation of the application process, potentially streamlining form completion and reducing administrative burdens. However, automation must be carefully implemented to avoid exacerbating existing inequalities.
More importantly, a shift towards proactive outreach is essential. Instead of waiting for individuals to seek help, governments and local authorities should leverage data analytics to identify those most likely to be eligible and actively inform them of available support. This requires a move away from a reactive, application-based system towards a more preventative, needs-based approach.
Personalized support will also become increasingly important. A “one-size-fits-all” approach simply doesn’t work. Tailoring information and assistance to individual circumstances, considering factors like age, income, and health status, will significantly improve uptake rates.
The Role of Social Tariffs
The increasing availability of social tariffs from energy, water, and broadband providers represents a significant opportunity to reduce household bills. However, awareness of these tariffs remains low, and eligibility criteria can be complex. Greater collaboration between providers and government agencies is needed to ensure these tariffs reach those who need them most.
A System Designed to Fail?
The sheer scale of unclaimed benefits – £24.1 billion annually – raises a fundamental question: is the system intentionally designed to be difficult to navigate? As Deven Ghelani argues, “You can’t rely on the system being too complicated to save money…On the one hand you’ve designed these systems to get support to people and then you’re making it hard to claim. That doesn’t make any sense.” Simplification and proactive outreach are not merely desirable; they are essential for ensuring a fair and equitable social safety net.
The challenge now is to translate awareness into action. Don’t assume you won’t qualify – explore the available options. The potential financial benefits are simply too significant to ignore. What steps will you take today to ensure you’re receiving the support you’re entitled to?
