More than £4bn in benefits will go unclaimed in London this year: ‘Too many people miss out’

Londoners are “cutting back on essentials just to make ends meet”, with more than £4bn in benefits expected to go unclaimed in the capital in 2025.

Policy in Practice estimates that £4.1bn in benefits will go unclaimed across London in 2025, with low-income households missing out on an average of £3,674 they are entitled to.

“We know how transformative this support can be for the older people we speak to everyday who are cutting back on essentials just to make ends meet,” Joanna Elson CBE, chief executive of Independent Age, said of the approximately £326m in pension credit going unclaimed in London.

“Whether this be washing in cold water, skipping meals or not turning the heating on in the colder months.”

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• Where to get help as cost of living payments come to an end

Policy in Practice’s findings come as the mayor of London Sadiq Khan has announced he will be extending his pension credit campaign which helps low-income pensioners in London access support.

The scheme has so far helped people access £40m in support which otherwise would have gone unclaimed.

The campaign reportedly helped almost 9,000 households in London secure pension credit since being launched in February 2023, with 4,400 households successfully claiming the benefit in the last year.

Pension credit, which is provided to people of state pension age on low incomes, can unlock further support, including free TV licences for those aged 75 or above, help with energy and council tax bills, and free NHS dental treatment.

In 2024, the winter fuel payment was limited to only those on pension credit, with Khan’s pension credit campaign helping people to access more than £773,000 in winter fuel payments they were entitled to.

Winter fuel payments will now be paid to all pensioners and then taken back from anyone with an income over £35,000, but it remains important that low-income households get the support for which they are eligible.

The campaign urged Londoners to check the benefits they are entitled to through City Hall’s Cost of Living Hub to help them access financial support. Charities including Turn2us and StepChange offer similar tools, which can help check your entitlement to any benefits, including universal credit.

After seeing success with the campaign, Khan is now extending it to help disabled Londoners and families on low incomes to access the support they are entitled to, with up to £220,000 invested to aid the programme.

The scheme will reportedly support disabled Londoners to access personal independence payment (PIP), while parents on low incomes will also be helped to access healthy start vouchers.

Khan explained that he is “determined” to support Londoners with the cost of living, and that the campaign has already unlocked millions in unclaimed benefits for older people.

“I know far too many people are still missing out on the vital support that they are entitled to, and it’s shocking that more than £4bn in benefits will go unclaimed across the capital – money that could be making a huge difference to families, disabled Londoners and older people,” he said.

“That’s why I’m extending my campaign to help reach more Londoners on low incomes and urging Londoners to use City Hall’s Cost of Living Hub to check their entitlements to ensure they or their loved ones don’t miss out.”

The benefits system is ‘too hard to navigate’

Experts have explained that benefits can often go unclaimed as the system is “hard to navigate”, and that campaigns like the mayor of London’s can help people on low incomes to “access the financial support they are entitled to.

“This campaign has already put millions into older Londoners’ pockets and extending it will make a life-changing difference to even more households,” Deven Ghelani, director and founder of Policy in Practice, said.

Abi Wood, CEO of Age UK London, added that the campaign has been a success, but there is a “lot of work to be done”, with almost a quarter of older people over the age of 80 living in poverty in London.

“This campaign has been highly successful in reaching the older Londoners that are eligible to receive more support and assisting them get that help,” she said. “With £40m paid out and 9,000 households benefiting since the beginning of the campaign, this will help pull older people in London out of poverty.”

Joanna Elson of Independent Age added that being able to access all of the support you’re entitled to can be “transformative” for older people who may be struggling to afford the essentials, and that it’s “encouraging” to see the Mayor of London’s campaign be extended.

“The £40m already secured for older Londoners is a powerful reminder of what’s possible when we break down barriers to receiving financial support,” Elson said.

“We welcome the Greater London Authority’s commitment to tackle financial hardship in later life and urge the UK government to follow suit by implementing a nationwide take-up strategy. With nearly one million eligible people missing out on pension credit across the UK and hundreds of millions of pounds in pension credit still not being received in London alone, there is still much more to do.”

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