Britons grappling with the escalating cost of living crisis may be eligible for approximately £19 billion that goes unclaimed annually in benefits, social tariffs and other discounts.
A 2023 study by Policy in Practice revealed that Universal Credit and Council Tax Support are among the most underclaimed government aids.
An estimated 2.7 million households are missing out on Council Tax Support, also known as Council Tax Reduction, which could offer them a share of £2.8 billion in support. This benefit is locally administered to those on low income or claiming certain benefits.
Because of this, each local authority can set different eligibility criteria and processes for claimants to apply for their share. A person’s home ownership status and employment status typically don’t affect their claim as the benefit generally only considers their age, income level, savings, who they live with and the amount of council tax they pay.
For instance, Liverpool City Council provides a 91.5% discount on council tax bills for working-age residents, while pensioners on a low income can receive up to a full 100% off. Applications can be made directly through their website.
Manchester City Council offers the support for individuals under the state pension age who are on a low income, have less than £16,000 in savings and capital, or are Universal Credit recipients.
According to Age UK, those receiving a disability or carer benefit, as well as those with the Guarantee element of Pension Credit, are likely eligible for Council Tax Support.
Considering the average council tax bill for a Band D property in the UK currently stands at £2,171, this could result in significant savings.
Research by Policy in Practice revealed that an astonishing 1.2 million eligible households are missing out on a staggering £7.5 billion of Universal Credit. The study identified several reasons why so many people aren’t receiving the help they desperately need.
Stigma, lack of awareness and administrative complexities in the application process were found to be primarily responsible for the shocking amount going unclaimed according to the researchers
Fragmentation in the benefits system, which makes some support schemes almost a postcode lottery, was also found as a contributing factor.
