Gazeta Lodz - London Mayor Pledges £5m to Close £4bn Unclaimed Benefits Gap

London Mayor Sir Sadiq Khan has announced a £5 million investment to expand access to unclaimed benefits across the capital, targeting a shortfall of more than £4 billion in financial support that remains inaccessible to thousands of residents.

The funding will extend the reach of the Family Financial Resilience Partnership to 19 boroughs over the next two years. The program provides free, independent advice to help low-income families navigate complex eligibility requirements and claim entitlements they have previously missed.

City Hall reported that since 2022, the initiative has assisted more than 170,000 Londoners in securing over £108 million in financial support. Officials estimate that expanding the program to additional boroughs could help a further 29,000 families access approximately £18 million in benefits.

Sir Sadiq Khan emphasized the practical impact of these funds on daily living costs. "I’m committed to doing everything I can to support Londoners with the cost-of-living and am proud that we have already helped over 170,000 Londoners claim more than £108m in financial support that they are entitled to," Khan said. "This money is making a big difference to help their daily lives and that’s why I’m providing further funding to ensure even more families on low incomes can get support."

Dr Debbie Weekes-Bernard, the deputy mayor for communities and social justice, noted that many residents remain unaware of available aid or face barriers to accessing it. "Many Londoners are still completely unaware or unable to access the financial support that is available to them" despite the ongoing cost-of-living crisis, she said.

The scale of the issue is reflected in broader national data. A report released last year by Policy in Practice, a social policy software and analytics firm, found that over seven million households across the United Kingdom are missing out on £24 billion in support. The highest volumes of unclaimed funds are concentrated in universal credit, council tax support, and carer’s allowance.

Policy in Practice identified several structural and psychological barriers preventing claimants from accessing aid. The company stated that people generally miss out on benefits due to limited awareness, system complexity, and stigma. "Many people simply don’t know they’re eligible, especially if they are working, have some savings, or their circumstances have recently changed," the report noted.

The organization highlighted that navigating the benefits system is particularly difficult for individuals with low digital skills, limited time, health issues, or language barriers. Long application forms, unclear guidance, and inconsistent experiences across different administering organizations further discourage applicants. Additionally, social attitudes and media coverage often frame benefit recipients as undeserving, which deters people from seeking help.

Abigail Everett, head of client services at Policy in Practice, highlighted the effectiveness of data-driven outreach. "Our ongoing partnership with the Greater London Authority shows the tangible impact of using data to bridge the gap in unclaimed support," she said. "Delivering over £108m directly into residents’ pockets is a powerful reminder of what collaborative, proactive action can achieve. By pairing targeted outreach with long-term financial resilience, we are keeping households out of crisis and taking meaningful steps towards closing London’s £4 billion unclaimed benefits gap."

Dr Weekes-Bernard stressed the urgency of expanding the program as winter approaches and concerns about covering bills increase. During a visit to the Barking Learning Centre Community and Family Hub in East London, she described the extension to more local authorities as crucial for vulnerable residents.

Service users at the hub reported significant relief from the advice provided. One individual, who sought support following homelessness and domestic abuse, described feeling overwhelmed and worried about their children's safety upon first reaching out. "The advice and referrals I have received have been incredibly helpful," they said. "They have helped me understand what support is available, what steps I can take, and where to turn when I need assistance. Knowing that someone is listening to me, taking my concerns seriously, and helping me find the right support has made me feel less alone during a very challenging time."

Another resident, who received support for their son’s special educational needs, added: "We no longer feel that we have to navigate these challenges alone, which has made a meaningful difference to our family."

The expansion of the Family Financial Resilience Partnership aims to replicate this outcome across the capital, ensuring that financial eligibility is not hindered by administrative complexity or lack of information.

X.Dabrowski--GL