Millions of vulnerable people missing out on benefits, Martin Lewis’ charity warns
Millions of vulnerable people are being left out of “life-saving” benefits, often worth thousands of pounds, due to a postcode lottery for claiming support, a new report has found.
Services to help people access the unclaimed income they are entitled to but are not receiving are overstretched and inconsistently provided across the country, according to the Money and Mental Health Policy Institute (MMHPI), a charity founded by Martin Lewis.
Nearly £24bn goes unclaimed each 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 difficulties access income maximization support such as benefits advisors and benefits calculators; Yet more than half (52 percent) report regularly running out of money to cover basic needs.
Meanwhile, almost two-thirds (72 percent) of respondents said they were unaware these services existed.
Researchers add that although online benefits calculators are the most easily accessible form of support, they are inadequate for people with mental health issues in 86 per cent of cases, and a dedicated benefits counselor would be better off in this regard.
Around 3.4 million people with mental health and debt problems in the UK could benefit from income maximization support if it were better provided.
MMHPI Chief Executive Helen Undy OBE said: “In the midst of a cost of living crisis, it is worrying that so many people with serious financial and mental health problems are missing out on this vital support that will boost their income. The Prime Minister says easing the cost of living is a key focus for this year and ensuring that everyone who needs quality income maximization support can access it should be a top priority in these efforts.”
“People tell us that this support saves lives when they are dealing with really serious financial and mental health issues. It is unacceptable that the way these services are funded means that many people miss out because the support they need is not available in their area.”
The charity chief is calling on the government to reform the “broken system” to ensure people get the support they need. MMHPI called on ministers to launch a nationwide review of income maximization support to establish a coordinated strategy to deliver this.
Independent Reports have recently been heard from consultancies in the UK saying they are struggling with insecure funding and high levels of staff burnout. Earlier this month, the National Association of Welfare Counselors (NAWRA) launched its campaign to make welfare counseling a legal duty; This means that local authorities must ensure the continued provision of this service.
