Benefits

£23 Billion in UK Benefits Goes Unclaimed Every Year — Are You Missing Out?

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According to the Policy in Practice, £23 billion in means-tested benefits and tax credits go unclaimed every year in the UK. That averages out to around £1,300 per household that isn't claiming what it's entitled to. Many of the people missing out aren't unemployed — they're working families, pensioners, and people with disabilities who've never been told what they qualify for.

Universal Credit

Universal Credit is the primary working-age benefit, replacing six legacy benefits. Despite being several years into rollout, millions still don't realise they qualify — particularly working families on modest incomes, those in part-time work, and people with disabilities who have income but high costs. Use the government's benefit calculator or Turn2us to check eligibility. Claiming UC can also unlock other entitlements (free school meals, council tax reduction, etc.).

Pension Credit

Pension Credit is the most widely unclaimed benefit in the UK — only around 60% of eligible pensioners claim it. For 2026/27, Pension Credit tops up income to a minimum of £218.15/week for singles and £332.95/week for couples. Claiming it also unlocks the Winter Fuel Payment, free TV licence (over 75s), housing benefit, and council tax reduction. If you know someone over State Pension age on a low income, encourage them to check.
  • •Tops up income to £218.15/week (single) or £332.95/week (couple)
  • •Unlocks Winter Fuel Payment, Council Tax Reduction, Housing Benefit
  • •Only ~60% of eligible pensioners currently claim it
  • •Apply via government website or call 0800 99 1234

Child Benefit

Child Benefit was claimed by nearly all families until the High Income Child Benefit Charge (HICBC) complicated it. Since April 2024, the charge taper has been adjusted — families where the highest earner makes under £60,000 now receive full benefit, and the full charge doesn't apply until £80,000. Families who opted out when the charge started may now be better off re-claiming. Check and opt back in if applicable.

Carer's Allowance

Carer's Allowance (£81.90/week in 2026/27) is available to anyone providing at least 35 hours/week of care for someone with a disability or health condition that receives DLA, PIP, or Attendance Allowance. Only around half of eligible carers claim it. Importantly, it's compatible with some other benefits and triggers National Insurance credits even for carers who aren't otherwise working.

How to Check What You're Entitled To

The easiest way to check all entitlements at once is to use a benefits calculator. Turn2us and Entitledto are both free and comprehensive. Citizens Advice can help with complex cases. Local authorities often have welfare benefits teams. Don't assume you don't qualify — the calculations are complex and the rules change frequently.
  • •Turn2us.org.uk: free benefits calculator
  • •Entitledto.co.uk: detailed means-tested benefit calculations
  • •Citizens Advice: in-person help with complex claims
  • •gov.uk/benefits-calculators: official HMRC calculator
Does claiming benefits affect my credit score?+

No — benefit claims are not reported to credit reference agencies and have no direct impact on your credit score.

What if I've been underclaiming for years — can I backdating?+

Backdating rules vary by benefit. Universal Credit can usually be backdated 1 month in limited circumstances. Other benefits have different rules. Check with Citizens Advice for your specific situation.

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