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Over seven million households are missing out on £24 billion worth of financial support due to unclaimed benefits and social tariffs.
A new report has found billions of pounds worth of income will likely go unclaimed in 2025/26 across the UK.
The research, carried out by social policy and data analytics company Policy in Practice, said the main reasons for this include a lack of awareness, complexity and social stigma surrounding benefits.
It said the highest unclaimed amounts are found in Universal Credit, Council Tax Support and Carer’s Allowance, while the largest numbers of missed claims are linked to broadband social tariffs, water discounts and Council Tax Support.
It said the figures highlight the need to “improve visibility and access to support for everyday essentials” and that helping people access the support would help “raise living standards, prevent crises and reduce pressure on public services”.
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A new report has found billions of pounds worth of income will likely go unclaimed in 2025/26 across the UK (Getty/iStock)
“The scale of unclaimed support in Britain is still staggering,” Deven Ghelani director and founder of Policy in Practice said.
“Over £24 billion is left on the table at a time when many are struggling to stay afloat. But this isn’t a failure of the public. It’s a failure of a social security system that is still too complex, too fragmented and too passive.
“The good news is that we now have the tools to fix this. In the past year alone, our work with local authorities, housing providers, and utility companies has helped put millions of pounds into people’s pockets. This shows what’s possible and what’s urgently needed.
“Every £1 claimed is a step toward better health, improved education, stronger families and reduced pressure on public services. It’s time for bold, coordinated action to close the £24 billion gap.”
The figure is an increase from the £22.7 billion estimated to have been left unclaimed in 2024, though the company said improvements to their methodology meant the totals are not directly comparable.
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Three major contributing factors – awareness, complexity and stigma – were highlighted in the report (PA Wire)
Three major contributing factors – awareness, complexity and stigma – were highlighted in the report.
It said the scale of the figure is partially due to the fact “many people simply don’t know they’re eligible especially if they are working, have some savings, or their circumstances have recently changed”.
Complexity marked another major barrier, with long forms, unclear guidance and inconsistent experiences across the system making it hard to navigate, particularly for people with low digital skills, limited time, health issues or language barriers.
The report also highlights how stigma, social attitudes and media coverage also prevent help being claimed.
“Many lack trust in the system and worry about being judged, singled out or burdened with intrusive checks or sanctions,” Policy in Practice said.
The company said in order to tackle the issue, systems must be made more accessible, joined up and easier to navigate.
It said aligning policies across central and local government, simplifying application journeys and using data more effectively could help.
A government spokesperson said: “We’re making sure everyone gets the support they are entitled to by promoting benefits through public campaigns and funding the free Help to Claim service.
“We are also developing skills and opening up opportunities so more people can move into good, secure jobs, while ensuring the welfare system is there for those who need it.”