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Charities challenge government over £16bn unclaimed benefits

3 February 2010

Twenty-seven leading charities* are today calling on the government to set ambitious targets to improve take-up of welfare benefits and tax credits, highlighting more than £16 billion in means-tested benefits and tax credits that currently goes unclaimed every year**.

In a campaign launched today, spearheaded by Citizens Advice, they have written to Secretary of State for Work and Pensions Yvette Cooper saying more needs to be done to ensure that money earmarked for children, families and pensioners in greatest need reaches those for whom it is intended.

The charities point to glaring examples where take-up is falling far short. Latest official figures** show that:

Other benefits showing signs of significant under-claiming include council tax benefit and pension credit. Up to three million households are missing out on an average £13 a week in council tax benefit, while as many as 1.7 million pensioners are missing out on an average of £31 a week in pension credit.

Take-up of housing benefit and council tax benefit have both fallen over the last decade, while take-up of child tax credit is far lower in London than in other parts of the country, and generally 10% lower among families from minority ethnic backgrounds.

Citizens Advice Chief Executive David Harker said:

“The government has made a serious commitment to eradicate child and pensioner poverty, and to help the working poor, yet up to £10.5 billion of means tested benefits and £6.2 billion of tax credits remain unpaid each year. This adds up to millions of people in dire need missing out on the help they should be getting to make ends meet. This is bad news at any time, but it’s especially worrying when so many are still feeling the impact of the recent recession. It’s absolutely vital that the government sets ambitious take-up targets for means-tested benefits and tax credits as an importantstep towards tackling poverty and providing adequate incomes for all.”

He went on:

“The benefits and tax credits system is extremely complicated and the reasons people don’t claim what they’re due are complex, ranging from simply not knowing about the benefit concerned, to being put off by what can sometimes seem a very daunting process, to feeling that the amount they gain will be negligible. But all too often they are missing out on substantial amounts of extra cash that could make all the difference between getting by or going under.

“We would urge people to get a free, confidential and independent benefit check at their local CAB.  Our advisers deal with 8,000 new benefit enquiries every working day and can help people navigate the complexities of the system, identifying all the extra help they should be getting and assisting with the claims process. Along with other concerned charities we are now challenging the government to invest the same amount of energy and effort into ensuring people get what they are entitled to as they put into cracking down on benefit fraud.”

ENDS

* The organisations listed below support the following statement from Citizens Advice:

'We call on the Government to set ambitious take-up targets for means-tested benefits and tax credits, as an importantstep towards tackling poverty and providing adequate incomes for all.'

**DWP: Income Related Benefits Estimates of Take-Up in 2007-08:

New windowwww.dwp.gov.uk/docs/ifd250609benefits.pdf

HMRC: Child Tax Credit and Working Tax Credit Take-up Rates 2006-07:

New windowwww.hmrc.gov.uk/stats/personal-tax-credits/cwtc-take-up2006-07.pdf

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see New windowwww.adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: www.citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.