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ARE YOU MISSING OUT? Billions in benefits going unclaimed - and it might be your fault




God. I almost choked on my coffee when I saw the latest figures. £3.1 BILLION in benefits sitting unclaimed while people struggle to make ends meet. That's not a typo - billions with a B.

I've spent the last decade covering welfare stories, and this one hit me differently. Maybe because my sister just went through six months of hell trying to get her PIP reassessed after her condition worsened. Or maybe because this money could actually change lives if it reached the right pockets.

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The shocking numbers that made me spit out my tea

Let's get into the nitty-gritty. The Department for Work and Pensions just released their latest data, and total benefit spending has jumped to £292.2billion - up from £266.2billion last year. But here's teh kicker: about 1.3% of that (a whopping £3.7billion) isn't getting to the people who desperately need it.

And why? Often because people simply don't know they're eligible or haven't updated their circumstances.



I remember talking to a benefits advisor back in 2021 who told me, "Half my job is just telling people what they're actually entitled to." Seems nothing's changed.

Where's all that money hiding?

The unclaimed cash is mostly concentrated in three benefits:

Over £1.06billion in Personal Independence Payments (PIP) is sitting unclaimed. These are payments meant for people with long-term disabilities or health conditions who haven't told the DWP their condition has gotten worse.

Nearly £980million in Universal Credit isn't reaching people. Usually because they haven't updated their work coach about changes like higher rent or new caring responsibilities.

Around £850million in Disability Living Allowance (DLA) payments going unclaimed.

The list goes on... Housing benefit has £180million unclaimed (often because people don't report rent increases), and Pension Credit has £100million sitting there because people don't update the DWP about changes in their financial situation.

Why the hell aren't people claiming what's theirs?

I asked this question to a welfare rights officer last week. His response: "Most people have no idea they need to report every little change."

The main culprit? Not reporting changes in circumstances. This includes everything from rent increases to new caring responsibilities, worsening health conditions, divorce, changes in financial assets, or changes in who lives in your household.

But there's also just plain lack of awareness.

My neighbor spent 3 years caring for her mom with dementia without realizing she qualified for Carer's Allowance. By the time someone told her, she'd missed out on thousands. Poor woman.

Updating your details (it's not as painful as a root canal)

Listen. I know dealing with government departments ranks somewhere between dental work and watching paint dry on the fun scale. But this is YOUR money we're talking about.

If you're on Universal Credit, you can report changes through your online journal. Or call the Universal Credit helpline: 0800 328 5644.

Got DLA or PIP? Call the Disability Service Centre on 0800 121 4433.

Claiming Pension Credit? Contact the Pension Service helpline: 0800 731 0469.

For housing benefit stuff, you'll need to contact your local council. Find their details at gov.uk/find-local-council.

One warning though (adn I learned this the hard way when helping my cousin update his housing situation) - reporting changes doesn't always mean more money. Sometimes it could mean less.

But you still need to do it.

The sting in the tail

If the DWP finds out you've been overpaid because you didn't report a change... they'll want that money back. I've seen this happen to people who then end up in debt spirals that take years to escape.

It's like financial quicksand.

So check what you're entitled to. Update your circumstances. And for goodness sake, don't leave your money sitting in government coffers when it could be in your bank account.

I'm off to call my aunt now - pretty sure she should be claiming Attendance Allowance after her hip replacement...


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Statistics

  • According to the World Bank, around 1.7 billion adults worldwide remain unbanked, lacking access to basic financial services.
  • As of 2021, the average American household had approximately $8,400 in credit card debt, according to Experian.
  • According to a Gallup poll, 56% of Americans report that their financial situation is better than it was a year ago.
  • In 2020, the average retirement savings for Americans aged 60 to 69 was approximately $195,000, according to Fidelity.
  • A report by Bankrate indicated that only 29% of Americans have a written financial plan.
  • As of 2021, the average student loan debt for recent graduates was approximately $30,000, according to the Federal Reserve.
  • A survey by the American Psychological Association found that 72% of Americans reported feeling stressed about money at some point in the past month.
  • As of 2021, the median household income in the U.S. was approximately $67,521, according to the U.S. Census Bureau.

External Links

finra.org

consumerfinance.gov

mint.com

kiplinger.com

smartasset.com

money.com

nerdwallet.com

ssa.gov

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