The staggering sum of £23 billion encompasses a range of crucial benefits, including over £8 billion in Universal Credit, £3.4 billion in Council Tax Support, and more.
According to a study of official statistics by Policy in Practice, the average household could claim up to £2,700 in benefits per year if they receive everything they are entitled to.
Unclaimed Benefits Soar to £30 Billion
The full estimate is £4 billion higher than last year, due in part to various benefits being boosted to keep up with inflation.
According to Policy in Practice founder Deven Ghelani, if unclaimed disability benefits and other discretionary payments are included, the total might exceed £30 billion.
He states: “Behind these huge figures lie individual families struggling to cope.
“This support exists for a reason and if we plug this £23billion gap and lift people out of poverty it will give them healthier lives, better educational attainment and longer life expectancy – and the costs to the NHS and social care would fall.”
How Much Could you Potentially Claim?
Universal Credit
You could be missing out on £5,772 each year.
According to Policy in Practice, more than 1.4 million people who could receive an average of £5,772 per year do not claim Universal Credit, costing a staggering £8.3 billion.
Universal Credit can potentially lead to additional benefits such as free school meals and social tariffs.
Ghelani asserts: “Universal Credit can provide a huge amount of support, but many families, especially those in work, do not believe they are eligible.
“Those with savings of under £16,000, who rent and have children should definitely be checking regardless of what their earnings are.”
Pension Credit
You could be missing out on £2,700 each year.
More than £2.1 million in pension credit is remaining unclaimed, with 808,000 elderly households on low incomes losing an average of £2,677 every year.
Ghelani states, "Pension credit is a vital lifeline."
Pension credit increases your weekly income to £218.15 if you are single and £332.95 if you have a partner.
The threshold may raise for those receiving other benefits such as carer's allowance or attendance allowance, implying that more people are eligible than previously thought.
Pension credit can potentially lead to additional benefits such as housing benefit, cost of living payments, and council tax savings.
Pension Age Housing Benefit
You could be missing out on £4,300 each year.
According to recent estimates, nearly 300,000 retirees are missing out on £1.2 billion in pension age housing benefit, amounting to an average loss of £4,300 per year.
The benefit is available to pensioners who pay rent, are on a tight budget, and have savings of less than £16,000.
If they get the Guarantee Credit component of Pension Credit, their income and savings are not taken into account.
According to Joanna Elson, CEO of Independent Age, "With 2.1million older people living in poverty, it has never been more important for older people on a low income to receive everything they are entitled to."
Carer’s Allowance
You could be missing out on £4,259 each year.
Every fiscal year, about £2.3 billion in Carer's Allowance is unclaimed, with approximately 530,000 full-time, low-paid carers missing out.
Carers are eligible for £81.90 per week if they care for someone for at least 35 hours per week, earn less than £151, and the person they care for receives a valid sickness or disability benefit.
Council Tax Support
You could be missing out on £1,513 each year.
Almost 2.3 million individuals miss out on £3.4 billion in Council Tax Support.
The unclaimed funds include nearly £1 million in pension age council tax subsidies. The remainder is for those old enough to work.
The average claim for working age council tax relief is £1,464, while seniors receive an average of £1,670.
Claiming benefits from local authorities can be a postcode lottery depending on where you reside, your salary, dependents, and other factors.