Fri, 12 Sep 2025

Fri, 12 Sep 2025 Seven million households missing out on benefits and support

A report from Policy in Practice says awareness, complexity and stigma are the main barriers stopping people claiming.
The report estimates that £24.1bn will go unclaimed in 2025-26, up from previous estimates of £23bn for the same period last year and £19bn the year before that. This includes unclaimed benefits across England, Scotland, and Wales such as universal credit, pension credit, free school meals, council tax support, and social tariffs on water, energy, and broadband. The government points to public campaigns promoting benefits and the free Help to Claim service, but critics argue that complexity is a major issue. Deven Ghelani, founder of Policy in Practice, says: "You can't rely on the system being too complicated to save money." Some progress has been made, with more older people claiming pension credit, and local authorities reaching higher numbers of students eligible for free school meals due to better use of data. The government's spokesperson said they are promoting benefits through public campaigns and funding the Help to Claim service. Critics argue that the system is too complex and relies on complicated forms and evidence requirements, making it difficult for people to claim their entitled benefits. Pension credit is highlighted as a key benefit that can lead to other financial help for those struggling, with some individuals crediting it with making a significant difference to their finances. However, others are worried about changes to universal credit, with nearly eight million receiving the benefit in June and 83.6% being British and Irish nationals. The legislation implementing these cuts could become law within one month. The report also highlights concerns about welfare system changes causing a "two-tier benefit system" for individuals with disabilities such as Joshua Reeves who has cerebral palsy.
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