Lantern helps customers discover £3.75 million in unclaimed benefits through automated income checks

For many households across the UK, 2026 is set to be another financially challenging year. Household debt levels continue to rise, and around 1.7 million households are already in a negative budget, unable to cover essential costs.

At the same time, priority debts have increased with more households falling behind on rent, mortgages and other essential bills. Arrears on housing and essential costs are now described as the ‘new normal’ for many households. Personal insolvency levels remain high, with insolvencies rising year on year and debt relief orders reaching record highs in 2025.

Despite this, many customers in financial difficulty are still unaware of the benefits and support available to them. In 2025, an estimated £24 billion in financial support went unclaimed, leaving over 7 million households without income they could be entitled to.

For credit and collections teams, this creates a significant challenge. Customers who appear unable to afford a repayment plan may be missing income that could improve their financial position, leaving them trapped in debt for longer and making sustainable resolution harder to achieve.

Lantern set out to address this by helping customers maximise their income and strengthen their financial resilience. They aimed to embed income checks directly into their self-serve affordability assessment, supporting better outcomes for customers while aligning with the FCA’s Consumer Duty requirements.

Lantern partnered with Policy in Practice to integrate the Better Off Calculator directly into its customer affordability journey.

Through a first-of-its-kind integration with the DebtStream collections portal, income checks are now built directly into Lantern’s income and expenditure assessment (I&E). As customers complete their I&E, the calculator runs seamlessly in the background, using Policy in Practice’s API, identifying potential eligibility for benefits and other financial support.

This moves beyond a simple yes/no affordability outcome, enabling Lantern to adapt its collections approach and identify more sustainable resolutions for customers.

Gareth Bailey, CEO, DebtStream, said:

“Our partnership with Lantern and Policy in Practice is a fully integrated solution that’s helping real customers every day. Together, we’re giving people in debt a better chance to get back on track, and giving creditors the tools to support them fairly and effectively.”

Results are presented instantly, giving customers a clearer picture of their true financial position and highlighting support they may not have been aware of. By integrating this directly into the customer journey, Lantern removes the need for separate signposting or extra steps, overcoming one of the biggest barriers to benefit take up: low awareness.

Lantern also made the tool accessible across multiple customer touchpoints, including:

• Lantern’s customer portal
• Lantern’s website
• QR codes included in customer letters
• outbound customer engagement campaigns

This multi-channel approach ensures customers can access support wherever they interact with Lantern.

Since launching the integration in September 2025, Lantern customers have uncovered significant additional income that can support their financial recovery.

To date:

• 730 customers have completed benefit checks
• 522 households discovered additional financial support
• £3.75 million in annual benefits has been identified
• Eligible households discovered an average of £522 per month in additional income

For many customers, this extra income can make the difference between struggling to engage with repayments and being able to agree on a sustainable plan.

By embedding income maximisation directly into the affordability process, Lantern has created a more supportive journey that helps customers improve their financial resilience while increasing engagement and resolution rates.

The integration also strengthens Lantern’s ability to deliver positive customer outcomes and demonstrate leadership in responsible collections under Consumer Duty.

Rob Johnson, Head of Partnerships, Policy in Practice, said:

“Too often, customers appear unable to afford a repayment plan simply because they’re missing out on income they’re entitled to. When affordability assessments miss available income, organisations risk setting plans that are either unsustainable for the customer or unworkable for the lender.

“By embedding income maximisation directly into Lantern’s affordability journey, we’re helping uncover that income at the moment it matters most, improving both customer outcomes and repayment sustainability.”

1. Income maximisation improves debt resolution outcomes
Helping customers identify additional income can unlock affordable repayment options and support more sustainable plans

2. Automation removes barriers to support
Embedding income checks directly into affordability journeys eliminates the need for separate signposting and increases take up

3. Financial services can play a key role in tackling unclaimed benefits
Debt resolution providers are well placed to connect financially vulnerable households to vital support

4. Multi-channel access increases reach
Offering the calculator across portals, websites, letters and campaigns ensures customers can access help wherever they engage

5. Supporting income strengthens Consumer Duty outcomes
Proactively helping customers maximise their income demonstrates genuine customer care and improves financial wellbeing