Millions missing out on £23billion in unclaimed DWP benefits – an average of £2,700 per person

A total of £22.7bn in benefits and financial support is expected to go unclaimed in the UK this year, according to new estimates.

Policy in Practice has revealed that 8.4 million people could be missing out on an average of £2,700.

It is an increase of £4bn on previous findings, primarily driven by the increase in benefits, the ongoing rollout of universal credit and refined Department for Work and Pensions (DWP) estimates revealing lower benefit take-up than previously found.

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Deven Ghelani, founder and director of Policy in Practice, said: “This is not just about the money, it’s about the profound impact on people’s lives. Support from the social security system is a right.

“The failure to deliver support to people who are entitled to it directly affects education, health outcomes and social participation for millions of people. If we don’t address issues now for people in need we will just see costs further rising. We can’t afford not to close the unclaimed support gap.”

A total of £8.3bn went unclaimed in universal credit. It means that more than 1.4 million people are missing out on an average of £5,772 this year.

It also includes billions missed in pension credit, carers allowance and child benefit from the DWP and HMRC, locally-administered benefits like council tax support and free school meals, as well as social tariffs and energy support.

Policy in Practice blames a lack of awareness around benefits, the complexities of navigating the systems and the stigma around claiming benefits.

A recent claimant said: “Unfortunately people have to be unrealistically proactive to understand how the systems connect and what they’re eligible for. More often than not this is left to our most vulnerable people or those who care for them, leaving them without the resources they need.”

The overall figure of unclaimed support excludes disability benefits and discretionary support, both of which require a further assessment. This means the true level of unclaimed benefits could be more than £30bn.

laire Atchia McMaster, director of income and external affairs at anti-poverty charity Turn2us, says: “At a time when so many people are struggling to afford basic necessities, navigating our benefits system should not be an additional burden.

“Yet, feedback from the Turn2us helpline indicates that accessing benefits is complicated, inaccessible, and emotionally draining. This complexity prevents millions from claiming vital support, exacerbating financial insecurity and impacting wellbeing. Clearer action from the government is crucial to ensure that this support reaches everyone who needs it.”

The charity urges people to regularly check what they might be entitled to through a benefits calculator. You can do this on both the Turn2us and Policy in Practice websites. You may find you are eligible for more support than you thought. In 2023, 60% of users on the Turn2us benefits calculator identified new benefits they were eligible for.

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