New analysis indicates UK households are collectively missing out on at least £19 billion a year in unclaimed welfare benefits, a sum that could be vital for families struggling with rising costs. The study, conducted by consultancy Policy in Practice, suggests lower-income households are failing to claim support for which they are eligible, with some families forgoing as much as £4,000 annually.
The figures show that 1.3 million households entitled to universal credit do not take it up, leaving £7.5 billion unclaimed each year. Nearly three million eligible families do not claim council tax support, worth £2.9 billion, while five million households miss out on almost £2 billion of help with water, energy and broadband bills.
According to the report, the complexity of the benefits system, a lack of public awareness, and the fear of being perceived as "benefit scroungers" are key reasons behind the high level of unclaimed support. Deven Ghelani, director of Policy in Practice, said: "It is shocking that £19bn of benefits and support is unclaimed at any time, let alone during a cost of living crisis. Missing out on eligible benefits could be the difference between households keeping their heads above water and feeling they are drowning."
Benefits advisers reported that even relatively small additional payments of £10 to £20 a week could have a transformative effect, enabling families to afford food, heating and activities. In one case, a pensioner couple in Kent living on £280 a week received an extra £222 a week in pension credit, equating to £11,500 a year. A Coventry pensioner on £55 a week was found to be eligible for an additional £138 a week, or £7,200 annually.
Pensioners are particularly likely to avoid claiming due to the perceived shame of receiving "handouts". An estimated 850,000 pensioner households fail to claim £1.8 billion in pension credit each year. The report urges the government to promote positive messaging about benefits to reduce stigma. It also highlights the system's complexity, noting households may need to make six or seven separate applications to receive the support they are owed.
The £19 billion figure does not include personal independence payment (PIP) and attendance allowance (AA) disability benefits, which have no automatic uptake. As food banks experience record demand and a fifth of households report skipping meals, the unclaimed support represents a critical gap in the social security safety net.
