The Department for Work and Pensions (DWP) has issued a warning as many people misunderstand payment rules and miss out on up to £1,000 in benefits. Specialists fear that individuals with widespread health conditions, particularly dementia, are wrongly believing they are ineligible due to confusion over qualifying criteria.
Dementia Costs and Unclaimed Benefits
Experts at life insurance provider Zurich have highlighted that people are not financially preparing for the likelihood of being affected by dementia, despite it being the UK's leading cause of death. Half of UK adults know someone with the condition. The costs of living with dementia can escalate dramatically as the illness progresses, with mild dementia costing an average of £28,700 per year, rising to £80,500 for severe cases.
Government assistance is available for those with health conditions like dementia, but many fail to claim their entitlements. Peter Hamilton, head of Market Engagement at Zurich UK, explained: "Many benefits are not automatic, meaning that you or your lasting power of attorney (LPA) must apply for them, which is a key barrier for people with cognitive impairment."
Potential Losses of £1,000 to £5,000 Annually
Research suggests individuals could be forfeiting between £1,000 and £5,000 each year in unclaimed benefits. Mr Hamilton discussed why people might be missing out: "People with dementia are disproportionately likely to miss out due to complex systems, cognitive decline, and low awareness. Lack of diagnosis also contributes, with more than a third of people with dementia in the UK not having a formal diagnosis, limiting access to support."
Attendance Allowance Often Overlooked
One benefit frequently unclaimed is Attendance Allowance. This payment helps those of state pension age who have a health condition requiring care or supervision. It offers either £76.70 or £114.60 per week. Claiming this support can unlock additional Government assistance, including extra Pension Credit, Housing Benefit, or a reduction in council tax.
Mr Hamilton said: "Attendance Allowance is often underclaimed, which directly supports care and supervision needs typical in dementia. But it is not means-tested, so many assume incorrectly they will not qualify." He suggested an automated system where benefits could be triggered based on health records, removing the need for individuals to submit applications.
