Media centre

• £11m of previously unclaimed Pension Credit has been claimed by Londoners in the past year alone, thanks to support from the Mayor
• A total of 4,597 older Londoners on lower incomes have claimed Pension Credit they are entitled to in the past year, with an average of £4,500 per claim
• The Mayor has announced he will extend the scheme for another year to help Londoners struggling with the cost of living

The Mayor of London, Sadiq Khan, has today announced he is extending his successful Pension Credit campaign for a further year, as new figures showed the scheme has delivered £19m to more than 4,597 older Londoners on low incomes.

Together with London boroughs, Sadiq launched a campaign in February 2023 to ensure older Londoners do not miss out on receiving all of their Pension Credit. Since then, more than 4,597 Londoners have claimed Pension Credit they are entitled to, resulting in £19 million in direct additional annual income.

With cost of living pressures persisting and energy bills rising again, it is important that older Londoners are made aware of all the extra support, including Pension Credit and Winter Fuel Allowance, that they are entitled to.

The government provides Pension Credit to people of state pension age on low incomes, however not everyone is aware that they qualify for it. In addition to providing extra money for older Londoners on low incomes, receipt of Pension Credit also unlocks a range of further support, including help with energy and council tax bills, free NHS dental treatment, Housing Benefit for renters and free TV licences for those aged 75 or above.

The Mayor will be extending the campaign for another year to work with 26 boroughs in the capital. The scheme is expected to reach over 12,500 households, with up to £10m in Pension Credit likely to be claimed.

The campaign, which launched in February 2023 in partnership with welfare and data analytics company Policy in Practice, sees eligible older Londoners in 26 London boroughs receive targeted letters to make them aware that they should be claiming this valuable benefit.

Since autumn last year, the campaign has targeted more than 12,400 households. This led to 4,597 older Londoners on lower incomes claiming Pension Credit they are entitled to, worth an average of £4,500 per person. In addition to this, all were able to claim Winter Fuel Payment, worth up to £300 per household.

This approach is easily replicable across councils and can significantly narrow the gap in unclaimed support.

Sadiq recently announced a further £3.5m in funding to extend free advice and support services across the capital that have already helped low-income Londoners secure more than £25m in financial support.

The Mayor of London, Sadiq Khan, said:

Many older households in London are disproportionately affected by cost of living pressures so I am delighted that thanks to our campaign they have claimed over £19 million in Pension Credit.

I’m pleased to be extending the scheme for a further year, helping to reach even more households across the capital that are eligible to receive Pension Credit. As Mayor, I will continue to stand up for all Londoners and do all I can to help them with cost of living pressures, building a better and fairer London for everyone.

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

We are delighted to see this campaign’s continued success, which has helped put an additional £11 million into the pockets of Londoners in the past year after already securing over £8 million in the previous year. It’s great news that more pensioners are getting the financial support they need. The increased income for some of London’s poorest elderly citizens, worth over £4,500, can have wider benefits, providing much needed relief this winter, opening access to additional support such as Warm Home Discounts and free TV licence.

We fully support the Mayor’s decision to extend the campaign, boosting incomes ahead of changes to Winter Fuel Payment eligibility. The results achieved in the capital are easily replicable across the country and we encourage local authorities to get in touch to see how they can follow suit.

John McGeachy, Campaigns Manager at Age UK London, said:

Sadly, it is often the case that those people who would most benefit from certain information, are the last to hear about it. This is certainly true when it comes to Pension Credit and sadly London has some of the lowest Pension Credit uptake rates in the country. That’s why this campaign is so important, and we’re delighted that it has been so effective so far. London has the highest poverty rate for people of pension age in the UK and having such a targeted campaign has never mattered more than it does now.

Cllr Anthony Okereke, London Councils’ Executive member for Communities, said:

Pension Credit is an important source of financial support for older Londoners on low incomes. That’s why it is fantastic to have the majority of London boroughs participating in this campaign with the Mayor of London, and we welcome its extension for another year.

By drawing on our strong relationships with communities and local voluntary sector organisations across the capital, London boroughs have helped make this campaign a success and increase the uptake of Pension Credit among our residents. This has meant more money in people’s pockets during the cost of living crisis and will ensure continued access to the Winter Fuel Allowance for those who need it most.

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@policyinpractice.co.uk
• 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.

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]

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.

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@policyinpractice.co.uk or admin@britishgasenergytrust.org.uk

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.

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@policyinpractice.co.uk 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 202

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.

DebtStream and Policy in Practice are delighted to announce their new partnership, set to transform the landscape of debt collection and benefits support.

Designed to help people in arrears, DebtStream is a digital self service platform with comprehensive collections capabilities. The integration of Policy in Practice’s award winning Better Off Calculator into its self service portal will empower consumers to see what benefits and support they may be missing out on so they can optimise their income.

Gareth Bailey, CEO, DebtStream, said:

This partnership marks an exceptionally exciting collaboration for DebtStream. By merging our services, we can deliver a substantial value proposition to consumers, offering a digital home for efficient and effective debt collection and easy access to unclaimed support—all accessible through the multi-award winning DebtStream platform”.

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

£19 billion of available support going unclaimed at any time is inconceivable, let alone during a cost of living crisis. One in ten families are missing out on much needed help. Innovative solutions such as this are vital to maximise support to those who may be struggling with debt repayments.”

The new Policy in Practice and DebtStream partnership signifies a shift in the debt collection industry. By better connecting people to support they’re eligible for thousands of customers will be better equipped to pay back their debts each month.

The new integration into existing debt collection journeys gives DebtStream customers access to Policy in Practice’s benefits calculator which is recommended by GOV.UK. The Better Off Calculator is used by around 10,000 people every month and puts around £720 million into people’s pockets each year.

With 11 million people in the UK unable to pay their bills and credit cards innovative solutions such as this are much needed. People can now manage their debt and access unclaimed support in one place.

DebtStream works to enhance the collections process by promoting transparency and trust between borrowers and debt collectors via personalised, user friendly journeys. This new partnership empowers customers to optimise their income and engage on their own terms. It gives people more control, privacy and dignity over their finances.

To learn more about this partnership contact hello@policyinpractice.co.uk. Both DebtStream and Policy in Practice teams are attending the MALG Conference 2023 on 9 November and will be happy to chat.

• 2,165 older Londoners have so far claimed an average of £3,879 in unclaimed Pension Credit
• Mayor and London boroughs to expand scheme this autumn to target over 10,000 Londoners and could see up to £9 million Pension Credit claimed

A scheme that has helped Londoners receive an additional £8.4 million in unclaimed Pension Credit is to be rolled out to 10,000 more older Londoners on lower incomes.

The Mayor of London, Sadiq Khan, together with London boroughs, launched a campaign in February to ensure older Londoners do not miss out on receiving all of the Pension Credit they are entitled to during the ongoing cost-of-living crisis.

More than 8,200 older households were targeted and the Mayor today revealed that the campaign resulted in 2,165 successful claims from eligible Londoners, amounting to just under £8.4 million (£8,398,429) in direct additional annual income – an average of £3,879 per claim.

The campaign, in partnership with welfare and data analytics company Policy in Practice, saw eligible older Londoners in 17 London boroughs receive targeted letters to make them aware that they should be claiming this valuable benefit.

Following the success of this initial phase, the Mayor has announced that he will be expanding the campaign this autumn to include up to 23 boroughs. It is estimated that these boroughs will contact a total of over 10,000 households, with up to £9 million in Pension Credit likely to be claimed.

Unclaimed Pension Credit is estimated to be worth £246.5 million a year in London alone, with eligible households each missing out on an average over £3,500 every year.

The Government provides Pension Credit to people of state pension age on low incomes. In addition to providing extra money for older Londoners on low incomes, receipt of Pension Credit also unlocks a range of further support, including help with energy and council tax bills, free NHS dental treatment, Housing Benefit for renters and free TV licences for those aged 75 or above.

The Mayor of London, Sadiq Khan, said:

This has been a hugely successful campaign that has secured more than £8 million in unclaimed benefits for older Londoners on the lowest incomes, who are disproportionately feeling the cost of living squeeze.

“I am pleased that we will now be extending the scheme to thousands more older Londoners who may not know they are eligible to receive Pension Credit or how to claim it. This is part of my commitment to continue building a better and more prosperous London for everyone.”

Cllr Claire Holland, London Councils’ Executive Member for Communities said:

Amid the ongoing cost-of-living crisis, Pension Credit can be vital for keeping low-income pensioners out of poverty.

“This campaign is a great example of what can be achieved through collaboration and intelligent use of data. Great progress has been made, but there are still struggling Londoners missing out on this crucial support. The expansion of the campaign will help ensure more pensioners receive the Pension Credit they are entitled to.”

Deven Ghelani, Director of Policy in Practice, said:

We are delighted to have helped put £8.3 million into the pockets of 2,165 pensioners across London. We are thrilled to have helped these households, who will now get almost £4,000 in additional support every year following this Pension Credit take up campaign.

“We welcome the Mayor’s decision to expand the campaign into the autumn, continuing to grow the incomes of Londoners during this ongoing cost of living crisis. It’s heartening to know that the results achieved in the capital are easily replicable across the country.”

Abi Wood, CEO of Age UK London said:

Receiving Pension Credit makes a significant difference to the lives of older Londoners on low incomes. It can be transformative for many, making life a little easier and crucially opening the doors to vital additional support. We are delighted that this scheme has been so successful and even more effective than anticipated. This success is particularly welcome in London, where we have some of the highest poverty rates in the country for people of pension age. We are very pleased that the Mayor is expanding the scheme. For too long, too many people entitled to Pension Credit have not been claiming it and so it’s great to see that this vital work will continue.”

ENDS

New analysis by Policy in Practice finds that the total amount of unclaimed income-related benefits and social tariffs is now £18.7 billion a year.

A forthcoming report from Policy in Practice estimates the value of unclaimed benefits and social tariffs.

The report finds:

1. National benefits administered by the DWP make up the largest share of unclaimed benefits. £7.5 billion of Universal Credit goes unclaimed by 1.2 million eligible households
2. Council tax support is the most underclaimed government benefit in England, with 2.7 million people missing out on £2.8 billion of support
3. Social tariffs are also significantly underclaimed. People on means-tested benefits should check their eligibility. There are at least 5 million households who could access lower costs social tariffs with their water, broadband, and energy providers

Benefits go unclaimed due to administrative complexity, a lack of awareness and increasing fragmentation of support.

• Administrative complexity: The sheer complexity of multiple application mechanisms, administering organisations, eligibility criteria and conditionality creates a barrier for many people who are trying to navigate the system and access support
• A lack of awareness: Many claimants are simply unaware that they can claim support given their circumstances or income
• Increasing fragmentation of support: Inadequacy of means-tested benefits is driving a growing plethora of discretionary and other support schemes. This creates postcode lotteries for available support, and unequal conditions to access it
• Stigma: Negative perceptions around claiming benefits may discourage eligible people from engaging in the benefit system

Our policy recommendations:

1. Set national benefit rates at a level that covers essential costs: Inadequate benefit levels partially contribute to an ever-increasing web of support to fill growing gaps in social security
2. Reduce complexity and increase awareness of benefits: The DWP and local authorities should have a responsibility to raise awareness of benefits eligibility and share data to maximise take-up
3. Change the messaging around benefits: The pandemic and the cost of living crisis highlighted how we all need access to social security in times of crisis. Public attitudes appear to be changing, government messaging should be supportive of social security, to ensure that all those that are eligible access support

Deven Ghelani, Director of Policy in Practice, said: “It is shocking that £19 billion of benefits and support is unclaimed at any time, let alone during a cost of living crisis. Universal Credit simplifies access to support, but a growing patchwork of support has emerged to plug austerity driven gaps in social security. Government needs to act to raise awareness of all unclaimed benefits and people should check their eligibility using a free benefits calculator.”