Sunday 4 August 2024

One million households will miss out due to the changes announced to the Winter Fuel Payment

Policy in Practice in new exclusive analysis estimates that

• Over 850,000 older people are eligible for but not claiming Pension Credit
• An estimated 130,000 older people miss out because they are just £500 over the income threshold to claim Pension Credit. They could be better off by having lower income and claiming Pension Credit and the Winter Fuel Payment

Social policy data analytics company Policy in Practice uses administrative data to help local authorities find residents who need support, identify unclaimed benefits, and better direct local discretionary support, such as the £1 billion Household Support Fund

Policy in Practice works to resolve issues such as the cliff edges, low awareness, complexity to claim and stigma around social security that result in UK households missing out on an estimated £23 billion of unclaimed support each year.

850,000 people are eligible but not claiming Pension Credit. These households miss out on passported support such as the Winter Fuel Payment, alongside Pension Credit. They could be missing out on more than £10,000 a year overall.

Policy in Practice found that local authority led take up campaigns can narrow the take up gap. A recent pan-London takeup campaign saw over 2,300 households take up Pension Credit who did not know they were eligible.

Locally led takeup campaigns were found to be more than twice as effective as national campaigns. Their project is expanding, operating across over sixty councils this year to drive takeup of Attendance Allowance, Free School Meals, Healthy Start and social tariffs.

The founder of Policy in Practice, Deven Ghelani, was one of the architects of the Universal Credit system. He said:

Taking the Winter Fuel Payment from better off pensioners is one of the few reasonable ways to save money in social security, particularly as they benefit from the triple lock. However, there really is no excuse for the shockingly low levels of Pension Credit take up as many older people continue to struggle with the cost of living.

The Secretary of State should prioritise simplicity in the benefit system and promote proactive support for people. The DWP could start by sharing data with local authorities and widening legislation to allow for automated take up campaigns for benefits such as Pension Credit. If Universal Credit data were shared more widely, we could boost incomes while lowering administration costs.

Editor’s notes

• A recent pan-London takeup campaign saw over 2,300 households take up Pension Credit they didn’t realise they were eligible. Read: How data made London Pensioners better off by over £8 million a year
• Locally led take up campaigns were found to be more than twice as effective as national campaigns. The take up rate achieved by local authorities across London averaged 29% compared to 13% achieved by a national DWP campaign
• An estimated £23 billion in benefits goes unclaimed each year. Read: Missing out 2024
• Data led take up campaigns are being implemented by over sixty councils this year to drive takeup of Attendance Allowance, Free School Meals, Healthy Start and Social Tariffs
• To learn how much is going unclaimed in your local authority email hello@staging-7278-policyinpracticeuk.wpcomstaging.com
• Case study: Miriam’s story: How a successful Pension Credit claim changed her life

Methodology

Nationally 1.4 million people claim Pension Credit, 850,000 are missing out (see Report: Missing out 2024 page 41 for how this figure was calculated.) Therefore a total 2.25 million people should be receiving Pension Credit.

In a sample of local authorities we found that there should be 42,154 people receiving Pension Credit. We also found that 2,500 are within £500 of being eligible for Pension Credit, but are not eligible. So the ratio of 2,500:42,154 was then compared to a ratio of X:2.25m nationally. The X there equals 130k figure of people who are missing out because they fall just below the eligibility threshold.

For additional queries please contact:

Cristin Proctor Rooney, Marketing Manager cristin.proctorrooney@staging-7278-policyinpracticeuk.wpcomstaging.com

Deven Ghelani, Founder and Director deven.ghelani@staging-7278-policyinpracticeuk.wpcomstaging.com

About Policy in Practice

Policy in Practice is a social policy, software and analytics company that helps people to access support. We work with over 250 organisations and 60 local authorities to prevent hardship. Our award winning betteroffcalculator.co.uk linked to from GOV.UK, helps around 40,000 people every month to get about £1,650 worth of support each. This is equal to £60 million a month and at least £720 million a year.

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£23 billion in benefits and support to go unclaimed in the UK this year

Policy in Practice’s latest annual analysis finds that a staggering £22.7 billion in support goes unclaimed every year across the UK.

Launched today, their Missing Out report reveals that 8.4 million people could be missing out on an average of £2,700 per year in rights based benefits.

This is an increase of £4 billion on earlier estimates which found £19 billion was going unclaimed. The increase is caused by the uprating of benefits, the rollout of Universal Credit and newly released DWP figures.

Table 1: Unclaimed benefits and support in 2024

The overall figure of unclaimed support excludes disability benefits and discretionary support, both of which require a further assessment. Including these elements pushes the true level of unclaimed support to over £30 billion.

This amount of support going unclaimed at any time is extraordinary let alone during a cost of living crisis.This is against a backdrop of more households in negative budgets and rising inequalities in health and educational outcomes.

This is not just about the money, it’s about the profound impact on people’s lives,” says Deven Ghelani, Founder and Director of Policy in Practice. “Support from the social security system is a right. The failure to deliver support to people who are entitled to it directly affects education, health outcomes and social participation for millions of people. If we don’t address issues now for people in need we will just see costs further rising. We can’t afford not to close the unclaimed support gap.

Why are benefits going unclaimed?

While each non-claimant’s circumstances vary, the three main reasons are: 

• A lack of awareness about available benefits or misconceptions about eligibility. 
• A complex system to navigate with multiple applications and complex eligibility criteria.
• The stigma attached to the benefits system and misleading narratives about claimants. 

Unfortunately people have to be unrealistically proactive to understand how the systems connect and what they’re eligible for. More often than not this is left to our most vulnerable people or those who care for them, leaving them without the resources they need.”
Recent claimant 

More can and must be done to reduce complexity within the system, change the messaging around benefits and to share data across government. 

People should check their own entitlements or on behalf of friends and family to see if they are missing out on any of the £23 billion of unclaimed support using one of the free benefits calculators as shown on GOV.UK. 

[END]

Notes for editors:

1. Methodology

The £23 billion figure represents a 21% increase from our last  report, primarily driven by uprating, Universal Credit rollout, and refined estimates revealing lower benefit takeup rates than previously assumed. For full methodology please see page 29 of the report.

2. About Policy in Practice

Since last year’s report Policy in Practice has helped 770,000 households increase their income by an average of almost £1,000 per year. This is a direct result of work with partners using their software to directly inform people of benefits they are eligible for and missing out on. 

Deven Ghelani says:

Local authorities are leading the way with initiatives to close this gap. Targeted campaigns are helping our local authority clients to reduce arrears by up to £12 million each year.

Policy in Practice is a social policy, software and analytics company that helps people to access support. We work with over 250 organisations and 60 local authorities to prevent hardship. Our award winning betteroffcalculator.co.uk linked to from GOV.UK, helps around 40,000 people every month to get about £1,650 worth of support each. This is equal to £60 million a month and £720 million a year. 

For more information visit www.staging-7278-policyinpracticeuk.wpcomstaging.com

3. Case study

Miriam’s story: How a successful Pension Credit claim changed her life

For additional case studies from local authorities, utilities partners and end users please contact: cristin.proctorrooney@staging-7278-policyinpracticeuk.wpcomstaging.com

Policy in Practice and British Gas Energy Trust join forces to help households struggling with energy debt

Policy in Practice has included a new alert in its award winning Better Off Calculator to direct users to energy debt relief grants available from the British Gas Energy Trust.

This collaboration aims to inform and empower the Trust’s clients and their household finances, allowing them to identify and apply for vital support, including the Trust’s own grant scheme.

Recent studies show that over one fifth of people in the UK were in poverty in 2022, a statistic that continues to rise. The calculator can identify support schemes that customers may be eligible for once customers have inputted basic information such as household details, health and caring responsibilities, property details and income and earnings. It also has a built in budgeting tool to show where people may be able to make positive changes to their outgoings.

Policy in Practice’s Better Off Calculator is recommended by government and listed on GOV.UK. It is an essential tool that helps two million people a year to identify £19 billion of unclaimed support so they can meet their basic expenses, including energy bills, during the ongoing cost of living crisis.

Jessica Taplin, CEO of British Gas Energy Trust said:

By partnering with Policy in Practice, we can help struggling households access a wider range of support schemes through their Better Off Calculator. Not only can this online tool support applications to the Trust’s energy grants, but it can also identify other national and local schemes, helping people both in the short and long term.

Deven Ghelani, Founder and Director of Policy in Practice, said:

The partnership with British Gas Energy Trust tackles immediate financial challenges by providing access to short term grants while streamlining access to long term, sustainable support boosting the financial security of users.  Together, this partnership will broaden awareness of unclaimed support and reduce barriers to take up.

£19 billion in support goes unclaimed in the UK each year

People are missing out on this valuable support as they are unaware it exists or mistakenly think they are not entitled to it. Navigating the benefits and grant applications system can be confusing. With varying eligibility criteria, multiple applications and many different organisations involved it can be daunting, making it all the more difficult to access support.

To learn more about this partnership contact hello@staging-7278-policyinpracticeuk.wpcomstaging.com or admin@britishgasenergytrust.org.uk

Policy in Practice launches campaign to secure unclaimed Pension Credit for 12,000 pensioners across London

A campaign to encourage 12,000 older people across London to apply for Pension Credit worth up to £3,300 a year has launched today.

The highly targeted campaign is led by Policy in Practice in collaboration with the Greater London Authority (GLA) and 25 London boroughs. It aims to put money into the pockets of pensioners who are struggling with the cost of living crisis.

Pension Credit can be backdated for three months and therefore can be a lifeline for those over the state pension age, providing people on low incomes with much needed extra support for living costs.

Millions of pounds in Pension Credit has already been claimed by thousands of Londoners who didn’t know they were eligible.

This first phase of the campaign ran from February to August 2023 and secured £8.4 million in benefit claims for pensioners across the capital. Over 8,200 households made successful claims worth more than £3,800 each a year, a life changing amount for people struggling on low incomes. Over the average lifetime of a Londoner this is worth £100 million across the capital.

Phase two of the campaign will run over three months and the results are expected in the summer.

London is one of the first cities to carry out region wide benefit take up campaigns. Backed by Age UK London and supported by councils across London the data led automated letter campaign can be easily replicated nationwide.

Nationwide around 850,000 households are missing out on £1.7 billion in unclaimed Pension Credit, along with millions of pounds in unclaimed social tariffs and passported benefits such as free TV licences, Warm Homes Discounts and Council Tax Support.

Deven Ghelani, Director of Policy in Practice, said:

We are very proud to be a part of this campaign, using the power of data to change people’s lives. This campaign will make a difference to their older residents as they grapple with the cost of living crisis.

With £19 billion of benefits remaining unclaimed nationally each year, the scaling up by London of a data-driven, targeted communications campaign for Pension Credit is a great start. Having already secured £8.4 million in unclaimed support we are delighted that this important campaign is expanding into 2024 and the results can and should be replicated across the country.

Abi Wood, CEO, Age UK London said:

With 24 percent of older Londoners living in poverty in London, we support this campaign to help put extra assistance in the hands of people that really do need it right now. We know from speaking to older Londoners that some are facing daily struggles to pay bills and even to provide nutritious meals for themselves. We wholeheartedly support creating awareness that Pension Credit is available for those that are eligible, and for this targeted approach to encouraging uptake.

Notes for editors:

1. Methodology:

Policy in Practice has analysed the administrative data held by councils using its Low Income Family Tracker (LIFT) platform to identify older households in receipt of housing benefit to see if they are eligible for Pension Credit but not claiming it. There are other qualifying routes explained in the letter to residents, including what happens if they have savings as they may still qualify.

2. London Councils

London Councils is the collective of local government in London. For more information visit www.londoncouncils.gov.uk

3. Policy in Practice

Families on the lowest incomes have the most complicated finances.

Policy in Practice makes government policy simple to understand, using software to give people the clarity and confidence they need to make positive decisions.

Its policy experts combine cutting edge technology, insightful data and expert analysis to join the dots. It helps local authorities to find relationships in their datasets, visualise the drivers of poverty and act earlier to prevent hardship. Its award winning Better Off Calculator, linked to from GOV.UK, helps around 40,000 people every month to get about £1,650 worth of support each. This is equal to £60 million a month and £720 million a year. For more information visit www.staging-7278-policyinpracticeuk.wpcomstaging.com

Contact: cristin.proctorrooney@staging-7278-policyinpracticeuk.wpcomstaging.com

4.  Case study: How London used data to make pensioners £8 million a year better off

Millions of pounds of Pension Credit has been claimed by thousands of people in London who didn’t know they were eligible. A recent campaign run by Policy in Practice, funded by the Mayor of London, saw 8,200 older households in 17 London boroughs receive targeted letters to make them aware that they might be able to get the benefit. As a result there were more than 2,000 successful claims, worth just under £8.4 million.

Lightning Reach and Policy in Practice partner to close the £19 billion benefit gap and better connect people to the support they’re eligible for

The award winning platforms from Lightning Reach and Policy in Practice have joined forces to transform the landscape of support access. Kindly funded by Fair4All Finance, the integration widens access to crucial support and streamlines the application process, actively dismantling long standing barriers to access.

Ren Yi Hooi, Founder and CEO of Lightning Reach, said:

We are excited to be working with Policy in Practice to enable more individuals to access the full range of support they may be eligible for across the ecosystem. Everyone should be able to secure the benefits they are entitled to, and the leading Better Off Calculator reaches millions of people in the UK who could also access additional support available on the Lightning Reach portal. We are grateful to our partners at Fair4All Finance for supporting this important initiative.

Deven Ghelani, Founder and Director of Policy in Practice, said:

We are delighted to partner with Lightning Reach to close the shocking unclaimed benefits gap. Integrating both platforms will broaden access to vital support and simplify an often fragmented application process for people who are trying to access crucial support. Lightning Reach leads the way with innovative integrations that align seamlessly with our own mission to empower people to access the support they need and boost their finances.

£19 billion in support goes unclaimed in the UK each year

People are missing out on this valuable support as they are simply unaware it exists or have the misconception that they are not entitled to it. Navigating the benefits and grant applications system can be confusing for people to engage with. Varying eligibility criteria, multiple applications and numerous different organisations involved can be daunting making it all the more difficult to access the support needed.

Almost one in ten of the UK’s population, nearly six million people, are currently missing out on crucial support.

The partnership tackles immediate financial challenges by providing access to short term grants while streamlining access to benefits support and other long term, sustainable support boosting the financial security of users. Individuals doing a benefit check through the Better Off Calculator can now also check for grants and other support available via the Lightning Reach portal and pre-fill their details, while Lightning Reach users can also complete an estimated benefit check within their portal. Organisations and advisors can save time by empowering the people they support to find and apply to a wide range of support more seamlessly.

Together, this partnership will broaden awareness of support as well as eliminating barriers to take up and closing the unclaimed benefits gap.

Policy in Practice is extending the power of its award winning Better Off Calculator by partnering with innovative leaders across multiple sectors to redefine how we reach people needing extra help.

To learn more about this partnership contact hello@staging-7278-policyinpracticeuk.wpcomstaging.com or hello@lightningreach.org. Hear Ren Yi Hooi and Deven Ghelani speak on The Cost of Living on the Breadline: Income Maximisation to Make Ends Meet panel at the MALG conference on 9 November 2023.