Executive summary
Policy in Practice finds that over 720,000 households are missing out on £501 per person each year
Policy in Practice estimates the amount of unclaimed income related benefits and social tariffs in Great Britain for 2024 is £24 billion a year. This figure is based on £19 billion in unclaimed support, plus £5.2 billion in unclaimed Attendance Allowance.
Regionally, the spread of eligibility, accessibility and need varies. The North East of England is missing out on an estimated £1.33 billion in unclaimed support annually across over 752,000 households.
We find that £501 per person per year is unclaimed in support in the North East. This is 40% higher than the £358 unclaimed per person nationally.
In line with national findings, unclaimed Universal Credit is the highest fiscal loss to the North East. A potential £690 million is unclaimed every year by nearly 70,000 working age people. Pensioners are also missing out on £357 million a year in Pension Credit, Attendance Allowance, Housing Benefit and passported free TV licences.
Maximising income through the take up of support is essential to help households during the cost of living crisis to improve health and boost local economies. Designing and deploying an effective safety net to support struggling families demands an accurate understanding of the level of unclaimed benefits and the groups who are not claiming.
This report recommends that regional and local government in the North East use data analytics to proactively identify and reach vulnerable residents we know are not claiming their full benefits entitlements.
We also recommend a regional approach to localised benefits schemes to provide regional equity, reduce complexity and support much needed administrative savings for local government.
Commissioned by the North East Child Poverty Commission and funded by Karbon Homes this report examines the effectiveness of the national and local social security system, its reach and, crucially, the gaps created by under claimed benefits across North East England.
Breakdown of £1.33 billion unclaimed value in the North East by benefit and support type
Recommendations
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 support: Implementing automatic enrollment for schemes such as Free School Meals and proactively allocating Discretionary Housing Payments can streamline the process and eliminate stigma associated with application. By adopting data driven approaches, regional authorities can maximise support for affected households while reducing administrative complexity
We are delighted to have worked with the North East Child Poverty Commission and Karbon Homes to produce our latest report, Missing out: Over £1 billion of support is unclaimed in North East England each year.
Our findings reveal a staggering £1.33 billion in unclaimed supportin the North East, leaving 752,000 households missing out on support during a cost of living crisis. This figure exceeds the national average by 40%, highlighting the importance of treating benefit takeup as a regional issue.
We know communities in the North East face challenges above and beyond wealthier parts of the country, and our report highlight structural barriers regional authorities may be able to address. Local authorities can use their data to identify households in their region who are eligible for support but not claiming and proactively inform them of their entitlements.
Rachael Walker, Policy and Research Director at Policy in Practice