Millions of households are missing out on vital support they are entitled to, as new research reveals the massive scale of benefits going unclaimed.
More than £24 billion will go unclaimed in 2025-2026, the report from Policy in Practice finds, with universal credit making up nearly half at £11.1 billion, followed by council tax support at £3.3 billion and carer’s allowance at £2.4 billion.
Spread between the seven million households estimated to be missing out, this would be an average yearly boost of £3,428.
The amount of unclaimed support increased by £2.7 billion from last year’s figure, excluding a few benefits to account for modelling changes.
For universal credit alone, the number of missed claims rose by 16.4 per cent, which Policy in Practice said can be attributed to the expansion of the benefit as managed migration reaches its final stages.
The report identifies several overlapping reasons why benefits entitlement is not being taken up, including a lack of awareness, the complexity of the welfare system, and a stigma around seeking support.
Hard-to-understand eligibility rules around many benefits mean that people are often unsure if they qualify, Policy in Practice said, and without a trusted source of information many assume they don’t.
Another barrier is the complexity of the system, which can stand in the way for people with limited digital skills, time constraints and health issues. Lengthy forms and unclear guidance often make it hard to know where to start.
Researchers add that social attitudes and some media coverage also often frame benefit claimants as “undeserving”, leading many to worry about being “judged, singled out or burdened with intrusive checks or sanctions”.
The system needs to be made “more accessible, joined up and easier to navigate”, Policy in Practice said. The social policy software company points to the success of initiatives like its Better Off Calculator, which provides a simple tool for people to check if they are missing out on any support they may be entitled to.
Deven Ghelani, director and founder at Policy in Practice, said: “The scale of unclaimed support in Britain is still staggering. 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.
“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.”
Claiming the support to which they are entitled can be a lifeline for struggling households, as the rising cost of essentials continues to outpace incomes in the UK.
The Independent recently shared the story of a mother who was able to reclaim £5,686 in missing benefits, even managing to backdate part of the entitlement by several years.
A government spokesperson said: “We’re making sure everyone gets the support they’re 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.”
