A significant number of people receiving Universal Credit are not claiming an additional payment of £201 per month for carers, according to government data. The Department for Work and Pensions (DWP) reports that unclaimed benefits within Universal Credit have risen substantially in the latest financial year.
This gap in claimed entitlements highlights a broader issue of unreported circumstances among benefit recipients. Many claimants fail to notify the DWP of changes that could increase their payments, leaving billions of pounds unclaimed across the welfare system.
Rising Unclaimed Benefits Reflect Unreported Caring Responsibilities
The DWP’s recent figures reveal that the total amount of unclaimed Universal Credit benefits due to unreported circumstances increased from £730 million in 2023/24 to £980 million in 2024/25. A key factor driving this rise is the number of claimants who have not informed the department about their caring responsibilities.
Universal Credit includes a carer element that provides an extra £201 each month for individuals who spend at least 35 hours a week caring for someone receiving disability benefits such as Personal Independence Payment (PIP) or Attendance Allowance.
Unlike the separate Carer’s Allowance, this payment has no earnings limit, allowing carers to receive the top-up regardless of income.
According to the DWP, approximately 9% of Universal Credit recipients could be eligible for this additional support if they reported all relevant changes. The increase in unclaimed funds is largely attributed to carers not updating their status through the ‘report a change’ section on their online Universal Credit account.
Broader Issues With Benefit Underclaims Across the System
The DWP report highlights that the most significant source of unfulfilled eligibility within Universal Credit relates to claimants failing to report increases in rent or claiming housing costs to which they are entitled. This underreporting results in many people receiving less support than they are eligible for.
The report emphasises that the welfare system relies heavily on claimants providing accurate and timely information. Without updated details on changing circumstances, the department cannot adjust payments, leading to lower benefits for many.
It is important to note that the figures only account for people already receiving benefits but missing out on higher payments due to incomplete reporting. They do not cover those who might be eligible for benefits but have not applied.
Claimants who suspect they might qualify for additional support are encouraged to review their circumstances and inform the DWP promptly. In some cases, the department may backdate payments for the carer element if claimants come forward after a delay.
The DWP’s findings underline the ongoing challenges within the welfare system to ensure claimants receive the full support to which they are entitled. Increasing awareness and simplifying reporting processes may help reduce the amount of unclaimed benefits in the future.
