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Mayor expands successful scheme that has helped older Londoners receive £8.4 million in unclaimed Pension Credit

• 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

Lower energy prices in July will not remove the burden of rising energy bills for struggling families

The Energy Price Cap is expected to fall from a peak of £4,279 in January 2023 to £2,074 on 1 July 2023

Headlines:

• Households will still face an 82% increase in their energy bills in July 2023 compared to July 2021. The average household will be paying nearly £1,000 more
• Larger families in older properties will face annual energy bills of £6,855, three times higher than Energy Price Cap value
• £466m in energy support goes unclaimed each year, energy support on its own is unable to plug holes in the core social security system

The fall in the Energy Price Cap should lead to a corresponding fall in energy bills, but the harsh reality is that most low income households will continue to struggle to pay their energy bills.

Government data on fuel poverty shows that energy bills have skyrocketed by 180% since the onset of the pandemic leaving many families burdened with exorbitant costs.

New analysis from Policy in Practice, a leading social policy and software analytics company, finds that:

• Misleading and unclear narrative around the reduction in the Energy Price Cap has many households believing they will see significant savings but the reality is that energy prices will remain high for the foreseeable future
• While the reduced cap value of £2,074 is an improvement, households still face an 82% increase from July 2021, paying £936 more in bills
• Larger families living in older properties will continue to experience significant increases in their energy prices, with their annual bills reaching a staggering £6,855. This is compared to £3,775 for the same family in 2021 (£3,080 more)

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

The fall in the Energy Price Cap does not alleviate the financial burden faced by households who are struggling to pay their energy bills, particularly for larger families in energy inefficient homes, and middle income families who do not qualify for government support but are struggling to pay their bills.

“Social tariffs on their own are unable to plug holes in the core social security system. Social security needs to be sufficient to cover core costs, including energy bills.”

Practical actions for government, business and consumers

Policies that invest in energy efficient homes and renewable energy sources as a sustainable approach to reducing energy costs. Our analysis finds that larger families living in older properties could save 27% on their bills if they lived in an energy efficient home.

Utility companies can better target support. By helping low income households to access unclaimed benefits alongside social tariffs, individuals and families are in a better position to better manage their energy bills and wider living cost pressures.

Policy in Practice’s recent analysis identified that £19 billion in Benefits and related support goes unclaimed each year. They estimate £466 million in energy vouchers and the Warm Home Discount goes unclaimed each year.

People who are struggling financially can use a reputable benefits calculator to see if they are entitled to additional support such as Universal Credit. It is important to encourage individuals to apply, even if they are only eligible for a small Universal Credit payment. A successful application can be a gateway to other support such as £150 off energy bills through the Warm Home Discount, cheaper broadband and the ‘Help to Save Scheme’.

ENDS

Notes to editors

Media enquiries to:

Cristin Proctor Rooney, Marketing Manager, Policy in Practice
075 657 40001
cristin.proctorrooney@policyinpractice.co.uk

Deven Ghelani, Director and Founder, Policy in Practice
07863 560 677
deven.ghelani@policyinpractice.co.uk
@Deven_Ghelani

About Policy in Practice

Policy in Practice was founded by Deven Ghelani. He was part of the team who developed Universal Credit at the Centre for Social Justice and he has written and spoken extensively as an expert on welfare reform. Policy in Practice empowers people and organisations via integrated support. It uses its policy expertise to develop software that lets organisations identify households who are struggling and missing out on support. Its software helps people to access support and gives them the clarity and confidence to make decisions. The Better Off Calculator is used by 2 million people each year putting over £700 million into people’s pockets. (Link: http://bit.ly/3YHfGK0)

Where mentioning Policy in Practice directly please link to our website (www.policyinpractcie.co.uk) or Better Off Calculator on GOV.UK. We encourage you if directing readers to a benefits calculator to direct them to GOV.UK where there are three government approved calculators to choose from. (Link: https://www.gov.uk/benefits-calculators)

Notes for producers and researchers

• Deven Ghelani, Director and Founder of Policy in Practice, is available for interview
• Case studies of utility companies using data and software to help vulnerable customers are available
• In May 2023 Policy in Practice released their report, Missing out: £19 billion of support goes unclaimed each year, finding that £19 billion in benefits are unclaimed annually.

£18.7 billion of support goes unclaimed every year according to new analysis

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.”

Notes to editors:

Policy in Practice was founded by one of the architects of Universal Credit to make the welfare system simple to understand. We help individuals and organisations identify households who are struggling, and missing out on support. Our software helps people to access support and gives them the clarity and confidence to make decisions.

The Better Off Calculator is a free benefits calculator on GOV.UK. It is used by 2 million people each year putting over £700 million into people’s pockets.

The LIFT analytics platform is used by over sixty local authorities to unlock access to around £1 billion of support each year.

Deven was part of the team that developed Universal Credit at the Centre for Social Justice and he has written and spoken extensively as an expert on welfare reform.

Media enquiries to:

Deven Ghelani, Director and Founder, Policy in Practice
07863 560 677
deven.ghelani@policyinpractice.co.uk
@Deven_Ghelani