The Department of Work & Pensions (DWP) has finally got around to producing a report they last did in June 2011 – How much welfare benefits goes unclaimed in simple terms.
This is as much as £15.657 billion per year in Pension Credit, Income Support, ESA, JSA and Housing Benefit alone. It will be more when all welfare benefits are included.
In June 2011 HMRC also published a report stating that £8.344 billion per year in Tax Credits goes unclaimed. If that is the same this makes a staggering £24 billion in ‘welfare’ that goes unclaimed. £24 Billion is £66 million per day!
The government are struggling to find half of that or £12 billion in cuts.
More significant is when Universal Credit is fully rolled out UC provides a one stop assessment for all benefit and tax credit you are entitled to and pays out that amount.
Universal Credit will cost at least £24 billion per year more in welfare as it pays 100% of what you are entitled to – not a penny more and not a penny less as I have often said and last did in February this year saying it would cost at least £20 billion per year MORE.
Ergo, Universal Credit is just another back of a fag packet politically motivated policy from the I believe it will work mentality of Iain Duncan Smith and his own departments figures in this report prove that.
The report referenced above has a title which states its purpose
The overview or executive summary on page 3 states all we need to know and I have emphasised the take-up / non take-up of each benefit mentioned by expenditure (from another official DWP report) and then cross-referenced this to arrive at the above figures.
Page 3 says
Here’s the numbers bit (not as difficult as it may read) and I explain this for Pension Credit figures and the same method applies to Income Support, Employment Support Allowance, Job Seekers Allowance and Housing Benefit and summarise in a table below.
- The report says in money terms (expenditure) that the DWP paid out between 67 per cent and 73 per cent of what was entitled in financial year 2013/14.
- We know from another DWP official report that the amount it paid out was £7.042 billion in Pension Credit (see below)
- So this £7.042 billion is between 67% of what should have been paid or the entitled amount is £10.510 billion or 73% ot what was paid out making the entitled amount and what should have been paid out between £9.647 billion and £10.510 billion.
- What has actually been paid in Pension Credit was therefore £2.605 to £3.468 billion LESS than what should have been.
OR – Up to £3.468 billion per year has gone unclaimed by those who were entitled to it.
AND – Once Universal Credit rolls out given it pays you 100% of all the benefits and tax credits you are entitled to with its one stop assessment then once UC does roll out this £3.468 billion of Pension Credit that now goes unpaid will be paid.
The same happens for all of the other benefits mentioned in the report and I summarise that in the table below.
That as you can see details up to £15.657 billion per year that the DWP admits that it knows claimants are entitled to yet do not claim.
£42 million per day in just 5 welfare benefits alone goes unclaimed
The data for actual spend is as referenced above and here is a compilation of screenshots which show it is expenditure costs and for 2013/14 which is the same financial year as the non-take up report that I have emphasised in red.
The £8.344 billion of Tax Credits (working tax credit and child tax credits combined) which went unclaimed I reported here in June 2012 though I note that HMRC has now archived the details but I will dig them out just in case anyone disputes them.
So in summary we have £24 billion per year of ‘welfare’ that we know goes unclaimed and the government (DWP & HMRC) admits to – the best part of £66 million PER DAY of welfare to which people are entitled to, goes unclaimed. And note well this only accounts for the non take up of just 5 welfare benefits so it will be more than this.
Finally, just in case anyone chooses to make an argument that this means UK benefits are too high I leave you with the findings of the Council of Europe (and nothing to do with EU and pre-dates it too) which said last week that UK Pensions, Incapacity and Job Seeker Allowance levels are MANIFESTLY UNJUST or not just low but shockingly low!
So just who is CONning who when it comes to welfare!