Wales losing billions in unclaimed benefits - report

Adviser Rhys Lewis says claiming the right amount of support can make a "massive difference" to families

Hundreds of thousands of households are "missing out" on extra income because they are not claiming the benefits and other support they are eligible for, according to new figures.

Policy in Practice, a data analytics company, found that more than £2bn is being left unclaimed in Wales this year.

Rhys Lewis, an adviser with Citizens Advice Caerphilly Blaenau Gwent said a team he works with recently helped a pensioner couple claim an extra £18,000 a year.

The Department for Work and Pensions said the welfare system “supports millions every year” and they “promote benefits" through campaigns and a helpline.

Mr Lewis, from Rhymney, Caerphilly county, said the cost of living pressures of the last few years meant he and his colleagues saw “a big uptake” in people seeking help.

“More people are needing to come in to maximise their income, which is something we do a lot, especially with benefits,” he said.

According to data from Policy in Practice, at least £76m worth of benefits and other support is left unclaimed in the Caerphilly and Blaenau Gwent areas alone.

The organisation estimates that across Britain £23bn is going unclaimed this year.

But there are higher proportions of unclaimed benefits in some places including Wales, where there may be additional barriers to claiming, said Rachel Walker, director of policy and research at Policy in Practice.

Rachel Walker says there are many reasons why people may not claim the benefits they could be entitled to

“There may be more poverty, there may be an older population, digital exclusion plays a massive role," Mrs Walker said.

She added the rural nature of some communities could also make it more difficult for people to access services which can then help them claim support.

The Policy in Practice figures suggest that at least £2.06bn in means tested benefits and other support is being unclaimed in Wales this year.

That includes UK benefits such as Universal Credit, as well as support funded by the Welsh government and delivered by local authorities such as council tax support.

It also included ways of reducing costs because receiving certain benefits means you qualify for reduced charges for services such as water and broadband.

Barriers to claiming the right level of support can include a lack of awareness of what is available as well as the complexity of the welfare system.

But claiming what you are eligible for can make a “massive difference” to people who have been struggling with rising prices over the last few years, said Mr Lewis.

“It’s taken that worry away," he added.

“People have said ‘I haven’t got to worry about watching the units on the gas and electric now’, and they can just feel comfortable in their homes and in life.”

It can also mean less demand on public services, said Mrs Walker.

“A pensioner who is claiming pension credit is less likely to draw on adult social services because they could heat their home," he said.

“And when we look at children, we know that when we maximise working age benefits, educational attainment goes up, health goes up, weight comes down.”

How to get help

• The Department for Work and Pensions provides links to some free, anonymous and independent benefits calculators provided by charities

• Call a free and confidential "Claim What's Yours" benefits advice line on 0808 250 5700

But the figure of £2.06bn in unclaimed support in Wales could be an underestimate because it does not include disability benefits.

In a separate report on attendance allowance, a benefit for pensioners who have certain health conditions, Policy in Practice estimated that 79,900 people in Wales could have missed out on £372m in the year 2023-24.

A Welsh government spokesperson said maximising household incomes was a top priority, and its Here to Help campaign encouraged people to contact Advicelink Cymru and “claim what’s yours”.

“We are delivering good results with our income maximisation projects, however if the UK government took a strategic lead on specific national take-up campaign this would improve the situation across Wales and the UK," they said.

The Department for Work and Pensions said those eligible for a specific benefit must apply to receive their entitlement.