£15bn Worth of Benefits Are Unclaimed - Could You Be Due a Pay Out?
Do you know if you are claiming all the benefits you are entitled to?
Whether you’re new to the benefits system or just find it very confusing, you’re certainly not alone. That said, it’s important to take the time to check as you could be missing out on vital financial support that could make life easier.
Using data from Entitledto, we’ve made it simple to see what benefits exist, along with how many people aren’t claiming them. Unless you’ve checked recently, this could include you.
So pens and paper at the ready, here’s what you need to get started. With just a couple of steps, your bank account could be in for a boost!
Why Aren’t People Claiming Their Benefits?
According to the Joseph Rowntree Foundation, the take-up rate of some benefits has been as low as 56% in recent years.
When you are on a lower income, it can be very difficult to manage your day-to-day life. A lot of people don’t realise they are entitled to certain benefits, or just don’t feel like they have the time or energy to think about it.
In general, reasons why you might not have claimed what you are owed can include:
Not being told about the benefit types that exist
Complicated application process
Finding the topic of money too stressful to deal with
Previous negative experiences when trying to access government support
Lacking access to internet or devices
Accessibility needs preventing you from filling out the application
If you identify with any of the above, or have other reasons such as struggling with debt, it’s important not to give up. That’s because if you can claim extra money, this could really help improve your financial situation.
We’ll now run through all the benefits you could be entitled to.
If you’re ready to check for yourself with a benefit checker tool, scroll to the end of this post. Here, we’ll also explain how to go about claiming any benefits you could be owed.
Council Tax Reduction
Number of people missing out: 2,700,000
Total unclaimed cash: £2.7bn
If you meet any of the following criteria, you could be given help with your council tax bill:
A low income (amount can vary depending on your local council)
You’re the only adult at home
Are in full time education or training
Temporarily living away from home due to being in hospital or living in a hostel
Have learning difficulties or a severe mental impairment
If you or someone you live with is disabled
It’s a good idea to notify your local council immediately of any changes to your living situation that would make you qualify for any council tax discount. This is to ensure that you don’t miss out on the maximum amount of support you may be entitled to.
If you are entitled to any discounts, then it’s also worth checking if you could be owed any backdated payments, depending on the date you would have first qualified for a discount.
As well as reducing how much council tax you pay each month, Martin Lewis recommends checking if you are on the correct council tax band. Martin’s tips resulted in one low income family receiving a £7,500 payout after it was found they had been placed on the incorrect council tax band, meaning the family were paying more than they should have been.
Child Benefit
Number of people missing out: 575,000
Total unclaimed cash: £0.9bn
Unlike other benefits, child benefit is non-means tested, although taxes can apply for higher earners over £50,000.
This means to be eligible for child benefit, you need to have a child that is under the age of 16 and lives in the UK. If your child is under 20 and is in education or training, you will normally still qualify to claim child benefit.
At the time of writing, child benefit is worth £25.60 per week for the eldest child and £16.95 per week for each subsequent child.
As a parent claiming child benefit, an added bonus is that you will also receive contributions towards your state pension if you are not working.
There is also a guardian’s allowance worth £21.75 per week if you are bringing up a child whose parents have died. This amount is paid on top of child benefit and is tax free.
Housing Benefit (Pension Age)
Number of people missing out: 710,000
Total unclaimed cash: £2.1bn
Being on a low income may mean you’re entitled to both types of housing benefits. If you have reached state pension age, you can still make a claim if you meet the following criteria:
You and your partner have reached state pension age
Either you or your partner reached state pension age and one of you was already claiming pension credit before the 15th of May 2019
You are currently living in supported housing or temporary housing
If you haven’t yet reached pension age, keep reading as there is another housing benefit type which has since been rolled into universal credit.
Pension Credit
Number of people missing out: 770,000
Total unclaimed cash: £1.4bn
Pension credit helps those who have reached pension age who are on a low income. It’s good to note that pension credit is not the same as the state pension. Instead, pension credit is designed to top up your living costs in addition to your pension or other benefits.
If you qualify for pension credit, you could get an extra £201.05 per week if you’re single, and up to £306.85 per week if you’re a couple.
Benefits That Are Now Known as Universal Credit
There is £9.2bn worth of other unclaimed benefits. You may have previously known these benefits under different names, such as:
Job Seeker’s Allowance
Child tax credit
Working tax credit
Income support
Housing benefit (working age)
These 5 benefit types are now part of Universal Credit, and it’s estimated that these unpaid benefits are yet to be claimed by up to 3 million people in the UK.
Therefore, if you are missing out on any benefits payments, then it’s highly likely you may be entitled to Universal Credit.
Am I Getting All My Benefits? 3 Free Tools to Check What Financial Help You’re Entitled To
If you think you could be missing out on any benefits, there are a few tools you can use now to check.
You might find it useful to grab any paperwork that could help speed things up before you start.
For instance:
Any benefits you’re currently claiming
Bank statements
Information about your housing costs
Information about anyone who lives with you
Next, click on any of the following 3 tools to see what you could be entitled to.
Better Off Calculator
The Better Off Calculator will ask you lots of questions about your circumstances, including your household income and general health. If you can be patient and fill everything in, this could help ensure you are claiming everything you should be.
You’ll need to create an account before you can use the Better Off Calculator.
Visit the Better Off Calculator
Entitled To
The Entitled To Calculator immediately loads up with options to click on, meaning there’s no need to register. Here, you’ll find a tax credits calculator along with benefits for housing and disabilities.
Overall, this calculator is very user-friendly. You’ll also see a progress bar so you can see how much more information you’ll need to fill out.
Visit the Entitled To Calculator
Turn2Us
The Turn2Us Calculator also doesn’t require you to register, and like the Entitled To Calculator it is simply a one-click option for most answers. There is also extra help if you are homeless or experiencing similar extreme financial hardship.
Top tip: Whichever tool you choose, remember to screenshot any results so that you can quickly find the answers without having to start again.
How To Claim Benefits
To claim for any benefits you’ll need to apply online via the UK Government website.
If you’re unable to do this, you will need to call the Universal Credit helpline on 0800 328 5644.
Alternatively, you can visit your local Citizens Advice which can provide you with a Help To Claim service.
Or, head over to their website to find out how to get help with your benefits application. Here, you can also access a live chat along with options if you have accessibility needs.
Fair For You - Flexible Lending to Suit Your Needs
We hope this article has been helpful, and that you’ll share it with any friends or family that could find this information useful.
For those who are on a low income, did you know Fair for You may be able to help? We are a not-for-profit organisation that offers the items you need for your home, but at a rate you can afford to pay back. You can learn more by reading our how it works page.
Take a look at our product categories to see the types of items you could purchase through us. Best of all, being on a low income or having a poor credit score does not mean we won’t be able to help you.
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