Mayor pledges £5m to unlock £4bn in unclaimed benefits

Mayor of London Sir Sadiq Khan has announced £5 million in new funding to boost the amount of unclaimed benefits claimed by residents across the capital. An estimated £4 billion in benefits, such as pension credit and carer’s allowance, is not being claimed each year.

City Hall has reported assisting over 170,000 Londoners to claim more than £108 million in financial support they were entitled to but had not claimed since 2022. The Mayor stated his commitment to supporting Londoners through the cost-of-living crisis.

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Expansion of Family Financial Resilience Partnership

Khan announced this week that the Family Financial Resilience Partnership will be extended to 19 boroughs over the next two years. This expansion is expected to help an additional 29,000 families access an estimated £18 million in support. The programme offers free, independent advice to help individuals claim financial support.

Dr Debbie Weekes-Bernard, the Mayor’s deputy for communities and social justice, highlighted that many Londoners remain unaware of or unable to access available financial support, particularly as winter approaches and concerns about bills increase. She noted the importance of extending the programme to more local authorities.

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Research from Policy in Practice, a social policy software company, indicated that across the UK, over seven million households are missing out on approximately £24 billion in support. Common reasons for not claiming benefits include a lack of awareness, system complexity, and stigma associated with claiming.

Abigail Everett, head of client services at Policy in Practice, commented on the tangible impact of using data to address unclaimed support. She stated that delivering over £108 million directly to residents demonstrates the effectiveness of collaborative action in closing the capital's £4 billion unclaimed benefits gap.

Service users shared positive experiences of receiving support. One individual, who had experienced homelessness and domestic abuse, described the advice and referrals as incredibly helpful in understanding available support and feeling less alone during a challenging period. Another user found meaningful difference for their family after receiving help for their son’s special educational needs.