DWP & HMRC support payments worth billions lay unclaimed in Wales
New figures suggest that hundreds of thousands of households in Wales are failing to claim vital extra income support. Data firm Policy in Practice has revealed that over £2bn worth of DWP and HMRC support payments are going unclaimed in Wales, despite many people being eligible.
The latest estimates for 2024/25 indicate that at least £2.06bn in means-tested benefits and other support is being left unclaimed. This includes universal credit, Welsh Government-funded support, and schemes managed by local councils.
Across the UK, it's believed that around £23bn is going unclaimed. People are being encouraged to check their eligibility for support payments to ensure they don't miss out.
Policy in Practice provided a breakdown of the estimated amounts for these benefits and payments currently going unclaimed in Wales for 2024/25, reported Wales Online.
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DWP and HMRC Payments
Universal credit: £778,149,030.
Child benefit: £636,558,676.
Carer's allowance: £135,232,297.
Pension credit: £117,095,177.
Locally administered benefits.
Council tax support: £240,738,116.
Free school meals: £33,404,069.
Healthy Start: £6,350,942.
Social tariffs and utility support.
Broadband support: £81,155,234.
Warm homes discount: £21,760,716.
Free TV licence: £5,316,475.
Water social tariffs: £4,589,120.
Total: £2,060,349,853.
It is difficult to say how many households in Wales are thought to be missing out, as many people qualify for more than one benefit and other benefits such as pension credit act as qualifying criteria for TV licence, for example. Policy in Practice has, however, estimated that around 397,000 households are thought to be missing out, based on taking the benefit with the most households missing out - broadband social tariffs - and using it as an estimated figure for the number of households missing out in Wales. Sign up for the North Wales Live newsletter sent twice daily to your inbox
Rachael Walker, policy and research director at Policy in Practice, told BBC's Radio Wales Breakfast on Tuesday that there were a number of reasons why people were not claiming despite being eligible, including different benefits being managed by different organisations with different rules and application processes, which she said was "complex" and "quite a maze to navigate" for people who don't understand the system.
For those who can navigate it, she said it can also be difficult to apply as each benefit requires different evidence and has different criteria, adding that many methods had to be done online, which she said presented a barrier for some households. She said there was also a stigma that claiming extra support was a "personal failing" which held some people back and added: "Across Wales there are additional barriers to claiming. There is rurality - 35% of people in Wales live rurally whereas in the UK that is around 17%. Just living rurally isn't a barrier in itself, but you have increased transport costs, less reliable transport, poorer access to public services, and digital exclusion and simply higher poverty rates as well."
"We know that people living in poverty often have poor health, poor mental health, and these are all a perfect storm that is preventing people from applying for benefits." Ms Walker added that Policy in Practice research and campaigns had found "eyewatering" sums including people missing out on an average of £4,000 a year in pension credit, which could rise to around £9-10,000 per year if you add in social tariffs like broadband and water bills support.
"We'd really recommend people do a benefit health check at least twice a year, the system changes all the time," she said , adding that there were a number of benefit calculators on the GOV.UK website where people can input their details and find out about help they might be missing out on.
How do I check if I am missing out on support?
To check if you are missing out you will have to look at the qualifying criteria for each benefit and see if it matches your own circumstances. For example, you might be able to claim universal credit if you are on a low income, out of work, working part time or unable to work for medical reasons. Find out what you need to know here.
Other benefits might be available to you if you have children, care for a relative or are of state pension age. You might be able to get free school meals if you get certain benefits like universal credit or income support but you can find out more about claiming them here.
If you're on certain benefits this usually qualifies you for social tariffs which mean you can get discounted water bills or broadband. MoneySavingExpert has a useful guide on broadband social tariffs which you can find here. Some support, such as the government-funded warm homes discount, which offers £150 off your energy bills through your supplier, only runs at certain times of the year and you will have to wait until October to avail of a warm homes discount.
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