New research shows that around seven million households across the UK are losing out on £24.1bn in unclaimed benefits and social tariffs, with many families unaware they are eligible for support. The analysis, conducted by Policy in Practice, highlights barriers including lack of awareness, complexity of applications, and stigma attached to claiming.
The report covers benefits across England, Scotland, and Wales such as universal credit and pension credit, as well as local authority support like free school meals and council tax discounts. Social tariffs from energy, broadband, and water providers are also going unclaimed.
The problem is increasing year-on-year. Policy in Practice previously estimated £19bn went unclaimed in 2023-24 and £23bn in 2024-25. The figure is now expected to reach £24.1bn in 2025-26, underlining the scale of the issue.
Why households miss out
Deven Ghelani, founder and chief executive of Policy in Practice, said the main reasons households do not claim are awareness, complexity, and stigma. Many people simply do not know the benefits exist, while others assume they will not qualify. Complex paperwork and repeated evidence requests deter claimants further.
Stigma also plays a role, with some households feeling ashamed to apply or distrusting the organisations that administer support. Ghelani warned: “You can’t rely on the system being too complicated to save money. That doesn’t make any sense.”
Real-life impact of claiming
For many families, successfully claiming makes a significant difference. Andrea Paterson, from London, persuaded her mother to apply for attendance allowance for her father before he passed away. The £110 weekly payment eased financial worries, helping them heat their home during the winter.
Robin, a pensioner from Greater Manchester, said pension credit is “essential to survive financially.” By claiming, he also qualifies for free dental treatment, council tax exemption, support for glasses, and the Warm Home Discount scheme.
Government response
The government says it is working to raise awareness through public campaigns and the Help to Claim service. In 2025-26, the social security system is forecast to cost £316.1bn, accounting for 23.5% of all government spending and 10.6% of GDP.
Despite criticism of the welfare budget, experts argue that unclaimed benefits highlight inefficiencies rather than overspending. Pension credit, known as a “gateway benefit,” is particularly important as it unlocks access to further financial help. Encouragingly, take-up among older people is rising, and some councils now reach up to 95% of children eligible for free school meals.
UK welfare challenges
The UK welfare system has faced long-term criticism for being difficult to navigate. Reforms introduced over the past decade aimed to simplify benefits, but experts say complexity remains a key obstacle. The unclaimed £24bn represents both a financial strain on struggling families and a failure to deliver support already allocated by government budgets.
