Nearly 1million people on three benefits missing out on up to £2,900 a year

ALMOST one million individuals on benefits are missing out on billions of pounds in extra payments, new figures reveal.

These people do receive benefits, but their needs have increased since their initial claims, and they have not yet received the additional support they are entitled to.

For the first time, the Department for Work and Pensions (DWP) has published a report providing these figures.

The report reveals that nearly one million people are missing out on approximately £3.1billion in extra payments in 2023/24, up from £2.3billion in 2022/23.

Those with active claims for disability living allowance, personal independence payments (PIP), and Universal Credit were most likely to be affected, which could leave them up to £2,900 a year worse off.

Previously, the DWP only offered separate statistics on the number of people claiming each benefit and the amounts they receive, as well as the number of people who do not claim benefits they are entitled to and the amounts they are missing out on.

The new report, however, highlights the issue of "unfulfilled" benefits - where claimants are not receiving all the benefits components they qualify for.

Examples of "unfulfilled" benefits include:

• A person who initially claims a disability benefit but whose condition worsens potentially qualifies for a higher rate of benefit that they have not applied for.
• Someone receiving help with rent through Universal Credit who has not reported an increased rent since their last assessment.
• An individual whose savings have decreased since their last assessment, making them eligible for more benefit

Steve Webb, former pensions minister and partner at LCP, said: "There is understandable focus on people who miss out completely on benefits to which they are entitled. 

"But this new report shines a helpful light on another reason why people may be missing out on billions of pounds in benefits. 

"These are cases where people's circumstances have changed since they first claimed benefit and would now be entitled to extra help but have not updated DWP. "

MOST UNFULFILLED BENEFITS

The three largest benefits, accounting for around three quarters of "unfulfilled" benefit expenditure are:

• Personal independence payment (PIP) - £870million (around £2,900 for each claim affected)
• Disability living allowance (DLA) - £750million (around £2,500 for each claim affected)
• Universal Credit - £730million (around £2,100 for each claim affected)

The DWP estimates that over 300,000 people on PIP qualify for bigger payments.

Millions of households suffering from a long-term illness, disability or mental health condition can get extra help through personal PIP.

PIP has two parts, both of which are assessed separately.

Whether you get one or both depends on how severely your condition affects you.

If you need help getting out or moving around, you may qualify for the mobility part of PIP.

The weekly rate is either £28.70 or £75.75.

The weekly rate for the daily living part of PIP is either £72.65 or £105.55.

You could get up to £184.30 a week if you qualify for both components.

According to DWP data, individuals with "unfulfilled" PIP claims could increase their payments by up to £2,900 annually.

A further 300,000 DLA claimants are thought to be missing out on boosted payments worth up to £2,500 a year, too.

The benefit provides extra support for people who have care or mobility needs.

DLA is been replaced by PIP and attendance allowance.

However, if you still claim the benefit, you could report a change in circumstances and get your payments boosted in the meantime.

The DWP's new report also shows that around 350,000 Universal Credit claimants are missing out on an extra £2,100 a year in payments.

Universal Credit is a monthly payment to help with your living costs. 

How much money you'll get depends on your circumstances, but the monthly standard allowance is £393.45 for a single person over 25 and £617.60 for a couple who are both over that age.

If you have a disability or health condition, or if your child does, there are extra top-ups you can get in your Universal Credit award.

If you rent, you can also get help towards those costs and any service fees you might pay.

Steve Webb added: "I would encourage anyone on a disability benefit whose condition has worsened or anyone on a housing benefit whose rent has gone up to make sure that DWP are aware of their latest situation. 

"Anyone on a means-tested benefit who has seen their savings fall since they were last assessed should also update the DWP. 

"We need to ensure that all benefits are paid on the basis of people’s current needs and not their situation months or years ago."