A recent study has unveiled that over 7.5 million individuals across the United Kingdom are missing out on crucial financial assistance that could alleviate the burden of soaring living costs. With an estimated £24 billion in unclaimed benefits and support, many low-income households remain unaware of the various forms of aid available to them, highlighting a significant gap in the system that could provide essential relief.
The Hidden Cost of Ignorance
Research conducted by Policy in Practice has revealed that a staggering number of families are failing to access vital resources designed to assist them in navigating the financial challenges of daily life. Factors such as a lack of understanding, the complexity of applications, and the stigma surrounding benefit claims contribute to this alarming oversight.
Anna Stevenson, a benefits expert at Turn2us, highlighted the importance of awareness: “Many people don’t realise that claiming universal credit or pension credit can open the door to extra support. These are not just financial lifelines; they are lifelines that can help meet specific needs when the main rate of benefits often falls short.”
A Spectrum of Support
The range of support available to those in need is extensive, yet underutilised. Here are some of the key forms of assistance that could make a significant difference:
Council Tax Discounts
For households facing financial difficulties, there are council tax discounts that can reduce payments by up to 100%. Each local council has its own criteria, and those in severe hardship may qualify for discretionary reductions. Policy in Practice estimates that around 2.5 million households could collectively miss out on an average of £1,286 in council tax relief from 2025 to 2026.
Free School Meals
As of September 2026, eligibility for free school meals will expand, potentially benefiting an additional 500,000 children. Currently, over two million children receive these meals, yet an estimated 123,000 are missing out despite being eligible. It is crucial for parents to apply in advance, as the expansion does not automatically enrol families.
Healthcare Cost Assistance
Individuals on certain benefits or those with low incomes may qualify for support with healthcare costs through the NHS. Those receiving income support or income-based Jobseeker’s Allowance or Employment and Support Allowance are automatically entitled to free prescriptions and dental treatment. However, these legacy benefits will transition to universal credit, leading to changes in eligibility criteria.
Energy Bill Discounts
As energy prices remain high, various schemes are in place to assist those struggling with bills. The Warm Home Discount, offering a £150 rebate, has been extended until 2031. This programme has widened to include 2.7 million additional families, but eligibility letters are only issued to those living in England and Wales, leaving some in Scotland to navigate a more convoluted application process.
Water Bill Support
Social tariffs for water services are available to help low-income households manage their expenses, but the extent of support can vary significantly by region. While every water company must provide social tariffs, the assistance can range from substantial discounts to minimal reductions, leading to concerns about fairness and accessibility.
Travel Discounts
Universal credit claimants can benefit from a Jobcentre Plus Travel Discount card, which offers up to 50% off transport costs. This includes reduced fares on certain rail services and public transport in London. However, the issuance of these cards is at the discretion of Jobcentre staff, which can lead to inconsistencies in access.
Affordable Broadband
Many broadband providers offer social tariffs for customers receiving universal credit or pension credit, ensuring that families can stay connected without incurring prohibitive costs. Ofcom has made resources available to guide individuals through the options.
Why it Matters
The implications of this under-utilisation of support are profound. With the rising cost of living putting immense pressure on families, the identification and claiming of these benefits could provide much-needed relief. Addressing the barriers to accessing this financial assistance is essential not only for individual households but for the broader economic health of the nation. By raising awareness and simplifying the claiming processes, we can ensure that these vital resources reach those who need them most, fostering a fairer society where everyone has the opportunity to thrive.
