Millions of vulnerable people are missing out on “life-saving” benefits often worth thousands of pounds due to a postcode lottery for support in claiming, a new report has found.
Services to help people access unclaimed income – which they are entitled to but do not receive – are overstretched and inconsistently provided across the country, according to the Money and Mental Health Policy Institute (MMHPI), a charity founded by Martin Lewis.
Around £24 billion is going unclaimed every year, according to the latest figures from research group Policy in Practice.
A survey by MMHPI shows that only a third of people with mental health problems and financial difficulty had accessed income maximisation support like welfare advisers and benefit calculators, despite over half (52 per cent) reporting that they regularly run out of money to cover the basics.
Meanwhile, nearly two-thirds of respondents (72 per cent) said they had no idea that these services existed.
Researchers add that, while online benefit calculators are the most easily accessible form of support, they are insufficient for people with mental health issues in 86 per cent of cases, where a dedicated welfare adviser would be better.
Around 3.4m people in the UK with mental health and debt problems could benefit from income maximisation support if it were better provided.
Helen Undy OBE, chief executive of MMHPI, said: “It’s alarming that in the midst of a cost of living crisis, so many people with serious financial and mental health problems are missing out on this vital support to boost their income. The prime minister says that easing the cost of living is his main focus for this year, and ensuring that everyone who needs quality income maximisation support can access it should be a top priority in those efforts.
“People tell us that this support has been life saving when they have been dealing with really severe financial and mental health problems. It is unacceptable that the way these services are funded means that many people miss out because the support they need isn’t available in their areas.”
The charity chief urges the government to reform the “broken system” to ensure people are able to get the support they need. MMHPI has called on ministers to commission a review into nationwide income maximisation support to produce a coordinated strategy for its provision.
The Independent recently heard from advice services across the UK, which say they are struggling with insecure funding and high-levels of staff burnout. Earlier this month, the National Association of Welfare Rights Advisers (NAWRA) launched its campaign to make social welfare advice a statutory duty, meaning local authorities would have to ensure its continued provision.
