New analysis by Policy in Practice has identified £1.33 billion in unclaimed support in North East England. The report uncovers a stark reality: despite a substantial amount of financial assistance available, a significant portion remains unclaimed by those who need it the most.
In the North East, £501 per person per year in support goes unclaimed, a figure 40% higher than the national average. This translates to missed opportunities for over 752,000 households, exacerbating existing financial challenges faced by many in the region.
As we continue to navigate through a cost of living crisis, understanding the range of claimed and unclaimed financial support is more important than ever, especially when a system of support is available but not being maximised.
This report sheds light on the significant issue of unclaimed benefits in the North East of England. With findings indicating a staggering £1.33 billion in unclaimed income related benefits and social tariffs annually, it’s evident that action is needed to support vulnerable households and uplift communities.
The report, produced for the North East Child Poverty Commission and funded by Karbon Homes, sets out recommendations for the North East’s policymakers, laying the foundations for regional approaches to tackling underclaimed benefits.
The hunt for missing support
Calculating benefit take up rates presents a challenge due to the lack of official and recent data. Estimates often rely on experimental methodologies and outdated figures, making it difficult to accurately gauge the extent of unclaimed benefits.
The methodology used in this analysis is based on claim and award data where feasible, breaking benefits down into constituent parts to provide more detailed estimates. Despite efforts to refine the methodology, the figures provided may still underestimate the true extent of unclaimed benefits.
In the North East, our analysis reveals a substantial amount of unclaimed support across various benefit categories. For instance, Universal Credit stands out as the highest unclaimed benefit, with an estimated £691 million per year left unclaimed by approximately 69,000 eligible households.
Other significant unclaimed benefits include Attendance Allowance, Carers Allowance and Pension Credit, highlighting the wide ranging impact of under claiming on vulnerable populations.
Breakdown of £1.33 billion unclaimed value in the North East by benefit and support type
Policy in Practice’s analysis shows that Universal Credit is the highest unclaimed benefit in the North East. An estimated £691 million a year is unclaimed by approximately 69,000 eligible households
Moreover, locally administered benefits such as Council Tax Support and Free School Meals contribute to the overall unclaimed amount, totaling millions of pounds annually. Social tariffs and energy support, including Water and Broadband social tariffs, Warm Home Discount, and Free TV licences, further add to the significant sum of unclaimed benefits in the region.
It’s important to note that the total amount of unclaimed support in the North East is likely much higher than the figures presented in the table. This is because the analysis excludes several discretionary support schemes and disability benefits.
For example, Discretionary Housing Payments and the Household Support Fund contribute millions to support vulnerable households, yet their inclusion would further inflate the unclaimed benefits total. Additionally, energy efficiency support initiatives and working age disability benefits are not fully captured in the analysis, further emphasising the complexity of estimating unclaimed benefits.
Barriers to claiming aren’t new, yet the solutions are transformative
Why are benefits left unclaimed? It’s a question that delves into a complex web of factors, each playing a significant role in hindering access to much needed support.
- Administrative complexity. The social security system in the UK is intricate, with multiple benefits, application mechanisms, and eligibility criteria. Navigating through this maze can be overwhelming for individuals seeking support, exacerbating the stress of financial insecurity. Universal Credit aimed to simplify this process by consolidating means tested benefits into a single application, but additional schemes still require separate assessments, adding layers of confusion for applicants
- Lack of awareness. Compounding the problem further, many eligible individuals simply don’t know they can access support due to their circumstances or income level. Despite efforts to streamline benefits under Universal Credit, separate application processes for local support and social tariffs may go unnoticed by those who need them most. Local councils play a crucial role in raising awareness and simplifying application processes, but more needs to be done to ensure that eligible individuals are not left in the dark
- The increasing fragmentation of support. Locally administered discretionary schemes attempt to fill gaps in the mainstream benefits system, but their discretionary nature creates a postcode lottery of availability and support levels. This often means that help reaches those who are already familiar with the system and can navigate complex processes, rather than those most in need. Additionally, disparities in local funding exacerbate regional differences in provision, with areas facing higher poverty levels struggling to allocate sufficient resources to support schemes.
As mainstream benefits struggle to keep pace with rising living costs, the reliance on discretionary support has grown. However, this further fragments the system, making it increasingly difficult for individuals to access the support they desperately need.
Addressing these barriers requires not only simplifying administrative processes but also ensuring equitable access to support across regions and bolstering funding for discretionary schemes. Only then can we begin to dismantle the barriers preventing individuals from claiming the benefits they are entitled to.
Recommendations for North East England
To address the pressing issue of unclaimed benefits in the North East, our report proposes several recommendations for policymakers:
- Take a regional approach to benefit take up campaigns. Instead of localised or national campaigns, the Combined Authorities in the North East should adopt a regional strategy to raise awareness and encourage benefit uptake. Drawing inspiration from successful campaigns in other regions, such as London, a coordinated effort can significantly improve the reach and impact of these initiatives
- Simplify and increase awareness of local benefits. Localised benefits such as Council Tax Reduction and Local Welfare Assistance may go under utilised due to confusion and lack of awareness and multiple application processes. These benefits are ideal for proactive allocation through smart use of data. Policymakers should streamline these schemes and enhance awareness to ensure equitable access across the region, reducing the existing patchwork of support
- Make proactive use of administrative data. Leveraging data analytics can help identify vulnerable residents who are not claiming their entitlements. By utilising platforms like the Low Income Family Tracker, authorities can launch targeted campaigns to reach those in need and facilitate benefit uptake effectively
- Tackle social tariffs at the regional level. Partnering with utility providers to target proactive support for social tariffs can alleviate financial burdens for many households. Following the example set by Northumbrian Water’s use of Policy in Practice’s Better Off Calculator, local authorities should explore opportunities to collaborate with other service providers and ensure eligibility aligns with local needs
- Automate locally determined supportImplementing automatic enrollment for schemes such as Free School Meals and proactively allocating Discretionary Housing Payments can streamline the process and eliminate the stigma associated with application. By adopting data driven approaches regional authorities can maximise support for affected households while reducing administrative complexity
Next steps for North East England
The launch of the Policy in Practice report underscores the critical need for action to address the issue of unclaimed benefits in the North East. By implementing the recommended strategies, policymakers have the opportunity to make a tangible difference in the lives of vulnerable individuals and families across the region.
It’s time to prioritise inclusive policies and proactive measures that ensure no one is left behind in the pursuit of a better future.
